Reasons for Buying Products Rather Than Making Them Include the Following

question 13

Multiple Choice

Reasons for buying products rather than making them include the following except

• A) suppliers' parts may be less expensive
• B) additional space,equipment and personnel skill are not needed
• C) risk of equipment obsolescence is transferred to outsiders
• D) more complete utilization of plant capacity permits more economical production

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from total revenue.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Operating Activities

Activities related to the day-to-day business operations, including cash flows from selling goods and services, and paying for expenses.

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.