The Cost to Produce Part a Was $20 Per Unit

question 29

Multiple Choice

The cost to produce Part A was $20 per unit in 2021.During 2022 it has increased to $23 per unit.In 2022 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:

Work-Related Behavior

Actions or conduct of employees that pertain to their job duties and responsibilities, including how they perform tasks and interact with colleagues.

Competencies

The combination of skills, knowledge, and abilities that are required to perform a specific job or task effectively.

Counterproductive Work Behaviors

Actions by employees that harm or intend to harm an organization and its members, such as theft or sabotage.

Sabotage

Deliberate actions taken to damage, disrupt, or undermine the functioning, success, or integrity of a project, process, or organization.