During 2015, It Cost Westa, Inc

question 61

Multiple Choice

During 2015, it cost Westa, Inc.$12 per unit to produce Part T5.During 2016, it has increased to $14 per unit.In 2016, 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:

Reading Films

The act of interpreting images produced by various medical imaging techniques, such as X-rays, for diagnostic purposes.

Radioactive Implants

Devices implanted in the body that release radiation to treat diseases, primarily cancer.

Localized Cancers

Cancers that are confined to a specific area and have not spread to other parts of the body.

Pelvic Ultrasound

A non-invasive diagnostic imaging procedure that uses high-frequency sound waves to produce images of the structures and organs in the lower abdomen and pelvis, including the uterus, ovaries, and bladder.