A Key Factor in a Make-Or-Buy Decision Is _____

question 99

Multiple Choice

A key factor in a make-or-buy decision is _____.

• A)whether or not there are idle facilities
• B)the amount of the sunk costs
• C)gain or loss on the disposal of equipment
• D)the total joint costs

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Definitions:

Credit

The provision of resources (such as money) by one party to another, with the expectation that the resources will be repaid, often with interest, at a later date.

Net 45

A payment term indicating that full payment is expected within 45 days from the invoice date.

Economic Order Quantity

A formula used to determine the most efficient quantity to order to minimize the costs associated with buying, holding and stockout.

Carrying Costs

Expenses associated with holding or maintaining an inventory, including storage, insurance, and taxes.