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The Criders Company Has 12,000 Units of Obsolete Inventory

Question 53

Multiple Choice

The Criders Company has 12,000 units of obsolete inventory.The units originally cost $6,000.The company can either sell them for scrap at $.20 per unit or they can invest $2,000 to be able to sell them at a price of $.60 per unit.With regard to this decision, relevant costs or benefits include:


A) $6,000 only.
B) $2,000 and $.20 per unit only.
C) $.20 per unit, $.60 per unit, and $2,000.
D) $2,000 and $6,000 only.

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