The Cost to Produce Part a Was $20 Per Unit

question 159

Multiple Choice

The cost to produce Part A was $20 per unit in 2012.During 2013, it has increased to $23 per unit.In 2013, Supplier Company has offered to supply Part A for $18 per unit.For the make-or-buy decision,

• A)incremental revenues are $5 per unit.
• B)incremental costs are $3 per unit.
• C)net relevant costs are $3 per unit.
• D)differential costs are $5 per unit.

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Definitions:

Network Structures

The configuration of connections and relationships among elements or members within a system, organization, or social group, influencing information flow and dynamics.

Central Business Core

The primary area within a city where commercial, cultural, and government activities are concentrated, often referred to as the downtown area.

Outside Contractors

Third-party individuals or companies hired to perform specific tasks or services that are not handled by the organization's internal staff.

Organizational Design

The process of structuring and aligning an organization's architecture, including its systems, processes, and positions, to achieve its goals.