Which of the Following Costs Is Relevant to a Make-Or-Buy

question 30

Multiple Choice

Which of the following costs is relevant to a make-or-buy decision?

• A)original cost of the production equipment
• B)annual depreciation of the equipment
• C)the amount that would be received if the production equipment were sold
• D)the cost of direct materials purchased last month and used to manufacture the component

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Definitions:

Mechanoreceptors

Sensory receptors in the skin and other body tissues that respond to mechanical pressure or distortion, involved in sensations such as touch and sound.

Cold Temperature

A condition of the environment in which the thermal reading is low, often resulting in a sensation of being cold and requiring organisms to adapt or seek warmth.

Special Sense

A perception such as sight, hearing, smell, taste, or balance requiring specialized organs.

Unencapsulated Receptors

Sensory receptors not surrounded by connective tissue capsules, detecting changes in their environment.