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A Company Is Planning to Introduce a New Portable Computer

question 61

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A company is planning to introduce a new portable computer to its existing product line.Management must decide whether to make the computer case or buy it from an outside supplier.The lowest outside price is $90.If the case is produced internally,the company will have to purchase new equipment that will yield annual depreciation of $130,000.The company will also need to rent a new production facility at $200,000 a year.At 20,000 cases per year,a preliminary analysis of production costs shows the following: A company is planning to introduce a new portable computer to its existing product line.Management must decide whether to make the computer case or buy it from an outside supplier.The lowest outside price is $90.If the case is produced internally,the company will have to purchase new equipment that will yield annual depreciation of $130,000.The company will also need to rent a new production facility at $200,000 a year.At 20,000 cases per year,a preliminary analysis of production costs shows the following:   Required: (1)Determine whether the company should make the cases or buy them from the outside supplier. (2)What other factors,besides cost,should the company consider? Required:
(1)Determine whether the company should make the cases or buy them from the outside supplier.
(2)What other factors,besides cost,should the company consider?

Match process costing terminologies with their appropriate definitions.
Understand stress management techniques and their impact on health.
Identify the physiological and psychological signs of stress.
Recognize the role of lifestyle and environmental factors in stress management.

Definitions:

Situational

Depending on or relating to a specific set of circumstances or context, often implying that different situations require different responses or actions.

Consensus Behaviour

Actions or attitudes adopted by a group as a whole, reflecting a common agreement or shared opinion among its members.

Dispositional Attribution

The tendency to attribute someone's behavior to their personal traits or disposition, overlooking external factors.

Resignation

The act of giving up a job or position, often formally through a written notice.

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