During 2019, It Cost Westa, Inc

question 40

Multiple Choice

During 2019, it cost Westa, Inc. $18 per unit to produce part T5. During 2020, it has increased to $21 per unit. In 2017, Southside Company has offered to provide Part T5 for $16 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 $2 per unit.
• C) Net relevant costs are $2 per unit.
• D) Incremental revenues are $3 per unit.

Understand the operational and strategic implications of e-business in the B2B and B2C contexts.

Recognize the role and impact of auctions in e-commerce.

Understand the dynamics and disruption caused by major e-commerce players in the retail and wholesale sectors.

Identify the principles of e-business and e-commerce, including their differences and security considerations.

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Definitions:

Reserve Requirement

This is a monetary policy tool used by central banks, specifying the minimum amount of reserves a bank must hold against its deposits. It influences how much money a bank can lend and thus helps control money supply and inflation.

Excess Reserves

The funds that commercial banks hold in their reserves over and above the regulatory requirement set by the central bank.

Reserve Ratio

The fraction of deposits that a bank is required to hold in reserve and not loan out, as mandated by central banking authorities.

Percent

A term used to describe one hundredth of a whole; a way to express fractions, amounts, or changes in quantities in terms of hundredths.