The Cost to Produce Part a Was $20 Per Unit

question 30

Multiple Choice

The cost to produce Part A was $20 per unit in 2013 and in 2014 it has increased to $22 per unit. In 2014, Supplier ABC has offered to supply Part A for $18 per unit. For the make-or-buy decision ________.

• A) incremental revenues are $4 per unit
• B) incremental costs are $2 per unit
• C) net relevant costs are $2 per unit
• D) differential costs are $4 per unit

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Definitions:

Sexual Relationship

A relationship between individuals that involves sexual interactions, which may or may not include emotional intimacy or commitment.

Homosexuality

The romantic or sexual attraction to people of one's own sex.

Heterosexuality

Sexual attraction or behavior directed toward individuals of the opposite sex.

Bisexuality

A sexual orientation characterized by the romantic or sexual attraction to people of both one's own gender and other genders.