Which of the Following Costs Are Not Considered in a Differential

question 16

Multiple Choice

Which of the following costs are not considered in a differential analysis for a make-or-buy decision?

• A)Indirect materials and indirect labor if the item is manufactured internally
• B)Direct materials and direct labor if the item is purchased
• C)Variable overhead if the item is manufactured internally
• D)Fixed overhead that can be avoided if the item is purchased
• E)Fixed overhead that will continue if the item is purchased

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Definitions:

Ethylene Glycol Poisoning

A toxic condition resulting from ingestion of ethylene glycol, a compound commonly found in antifreeze, leading to metabolic acidosis and renal failure.

Treatment

The application of remedies or therapies to cure or alleviate a disease or medical condition.

Ethylene Glycol

A colorless, virtually odorless, and slightly sweet liquid used primarily as an antifreeze in cooling systems and in the manufacture of polyester fibers.