Max Company Uses 20,000 Units of Part a in Producing

question 142

Multiple Choice

Max Company uses 20,000 units of Part A in producing its products.A supplier offers to make Part A for $7.Max Company has relevant costs of $8 a unit to manufacture Part A.If there is excess capacity, the opportunity cost of buying Part A from the supplier is

• A)$0.
• B)$20,000.
• C)$140,000.
• D)$160,000.

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Definitions:

Logical Thought Processes

Systematic and rational ways of thinking that adhere to strict principles of validity and consistency, often used in problem-solving and decision-making.

Scaffolding

Process in which a more skilled learner gives help to a less skilled learner, reducing the amount of help as the less skilled learner becomes more capable.

Vygotsky's Concept

Refers to the theories of Russian psychologist Lev Vygotsky, emphasizing the importance of social interaction and culture in cognitive development.

Temperament

An individual's natural predisposition towards emotional reactivity and intensity of behavior.