Which One of the Following Does Not Affect a Make-Or-Buy

question 1

Multiple Choice

Which one of the following does not affect a make-or-buy decision?

• A) Variable manufacturing costs
• B) Opportunity costs
• C) Incremental revenue
• D) Direct labor

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Definitions:

Utility Function

A utility function is a mathematical representation in economics that depicts an individual's preference ranking over a set of goods or outcomes, showing the level of satisfaction or utility derived from them.

Nuts

Hard-shelled edible seeds of certain plants, often rich in oil and nutrients.

Berries

Small, juicy fruits with a high vitamin content, often edible and ranging in flavor from sweet to tart, used in various culinary applications.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from consuming goods and services.