A Make- Or- Buy Decision Examines Whether a Manager Should

question 42

Multiple Choice

A make- or- buy decision examines whether a manager should incur - period costs in order to produce _______in the ________ period(s) .

• A)future; inputs; present
• B)present; inputs; future
• C)present; outputs; future
• D)future; outputs; present

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Definitions:

Payroll Tax Expense

Payroll Tax Expense is the employer's cost associated with the employment of staff, including taxes such as social security and Medicare taxes that must be paid based on salaries.

Wages Payable

A liability account representing the amount owed to employees for work performed but not yet paid.

Gross Earnings

The total income earned by an individual or business before any deductions like taxes and social security contributions.

EIN

An Employer Identification Number, issued by the IRS, used for identifying a business entity and for tax filing purposes.