Which of the Following Would Generally Not Affect a Make-Or-Buy

question 163

Multiple Choice

Which of the following would generally not affect a make-or-buy decision?

• A) Selling expenses
• B) Direct labor
• C) Variable manufacturing costs
• D) Opportunity cost

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Definitions:

Demand for Labor

The total amount of labor (number of workers or hours worked) that employers want to hire at various wage rates.

Elastic

Describes a situation in which the demand for a product is sensitive to price changes; a small price change results in a significant change in quantity demanded.

Demand Schedule

A demand schedule is a table that shows the quantity of a good or service that consumers are willing to purchase at various price points.

Slope

The measure of steepness or incline, typically describing the change in the vertical over the change in the horizontal.