Roseland Company Is Trying to Decide Whether to Continue to Manufacture

question 31

Multiple Choice

Roseland Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier.Which of the following is irrelevant with respect to this decision?

• A) the quality of the component purchased from the outside supplier
• B) the outside supplier's ability to deliver the component on a timely basis
• C) the alternative uses of the facilities currently being used to manufacture the component
• D) the unavoidable fixed manufacturing costs associated with the manufacture of the component

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Definitions:

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Postmodern City

A city characterized by a complex and diverse social structure, architectural eclecticism, and a decentralized layout, reflecting the economic, social, and technological trends of the postmodern era.