During 2019, It Cost Westa, Inc

question 2

Multiple Choice

During 2019, it cost Westa, Inc.$12 per unit to produce Part T5.During 2020, it has increased to $14 per unit.In 2020, Southside Company has offered to provide Part T5 for $9 per unit to Westa.As it pertains to the make-or-buy decision, which statement is true?

• A)Differential costs are $5 per unit.
• B)Incremental costs are $3 per unit.
• C)Net relevant costs are $3 per unit.
• D)Incremental revenues are $2 per unit.

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Definitions:

Demographic Data

Collected statistical data about the characteristics of a population, such as age, sex, income level, and education, for analysis and policy-making.

U.S. Census Bureau

A principal agency of the U.S. Federal Statistical System responsible for producing data about the American people and economy.

Malthusian Theorem

The theory that exponential growth in population will outpace arithmetic growth in food production and other resources.

Demographic Transition

A theory about change over time from high birth and death rates to low birth and death rates, resulting in a stabilized population.