Order Point Ltd Manufactures Componentry Used in the Production of Computers

question 71

Multiple Choice

Order Point Ltd manufactures componentry used in the production of computers. The units can be purchased for $50 each from an outside vendor. It costs the manufacturer $60 per unit to produce them, of which 25% is fixed overhead cost. What are the relevant costs for this decision? Based on these costs, which option should the company choose? $\begin{array} { lcc }&\text {Relevant Costs}\\&\underline{\text{(Manufacture and Purchase) }}&\underline{\text {Decision}}\\ \text { i. } & \$ 50 \text { and } \$ 45 & \text { Manufacture } \\ \text { ii. } & \$ 50 \text { and } \$ 45 & \text { Purchase } \\ \text { iii. } & \$ 45 \text { and } \$ 40 & \text { Purchase } \\ \text { iv. } & \$ 45 \text { and } \$ 40 & \text { Manufacture } \end{array}$

• A) i
• B) ii
• C) iii
• D) iv

Understand the components and importance of cultural intelligence in cross-cultural interactions and teamwork.

Recognize the impact of cultural biases and stereotypes on intercultural communication and relationships.

Identify the significance of understanding cultural values and how they influence communication styles, teamwork, and leadership.

Learn about different cultural prototypes (face, dignity, and honor cultures) and their impact on behavior and communication.

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Definitions:

Resistance To Change

The opposition or reluctance of individuals or groups to alter their behavior, procedures, or way of thinking despite the introduction of new ideas or changes.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors and interactions.

Important Factor

A critical element or aspect that significantly influences outcomes or decisions.

Habit

A regular behavior or practice that an individual performs automatically.