Which of the Following Costs Is NOT Relevant to a Make-Or-Buy

question 72

Multiple Choice

Which of the following costs is NOT relevant to a make-or-buy decision?

• A)£10,000 of direct labour used to manufacture the parts
• B)£30,000 of depreciation on the plant used to manufacture the parts
• C)the supervisor's salary of £25,000 that will be avoided if the part is purchased from an outside supplier
• D)£15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier

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Police Power

The capacity of a state to regulate behaviors and enforce order within its territory, typically for the protection of health, safety, welfare, and morals of the community.

Populist Party

A political party in the United States in the late 19th century that advocated for the interests of average citizens, farmers, and workers.

Third Parties

Political parties that operate alongside the primary two parties in a two-party system, often influencing specific issues or ideological spectrums.

American Political System

The governance framework in the U.S. characterized by democracy, federalism, and a constitutional division of powers among the executive, legislative, and judicial branches.