Which of the Following Terms Refers to the Decision of Whether

question 11

Multiple Choice

Which of the following terms refers to the decision of whether to produce a component internally or to outsource it from another company?

• A) buyer decision process
• B) decision problem
• C) per curiam decision
• D) make-or-buy decision

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Definitions:

Raw Materials Purchases

The total cost incurred by a company to buy the raw materials needed for production.

Standard Costs

Standard costs are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period under assumed conditions.

Kilos

A metric unit of measure for mass, equivalent to one thousand grams or approximately 2.20462 pounds.

Cash Account

An account that records all cash transactions, including cash receipts and cash payments, within a business.