In Deciding Whether to Manufacture a Part or Buy It

question 1

Multiple Choice

In deciding whether to manufacture a part or buy it from an outside supplier, which of the following is an irrelevant cost?

• A) Direct labour
• B) Variable overhead
• C) Fixed overhead that will be avoided if the part is purchased from an outside supplier
• D) Fixed overhead that will continue even if the part is purchased from an outside supplier

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Definitions:

Views

The depiction of a three-dimensional object on a two-dimensional surface, showing the object from various angles and perspectives.

Three-Dimensional

Pertaining to objects or spaces that have height, width, and depth, giving them a sense of volume or solidity.

Object

Something material that can be seen and touched, or a specific entity in programming that contains data and methods to manipulate that data.

Abbreviation

A concise representation of a longer phrase or term made by using the initial letters or components of words.