In Deciding Whether to Manufacture a Part or Buy It

question 47

Multiple Choice

In deciding whether to manufacture a part or buy it from an outside vendor, a cost that is irrelevant to this short-run decision is:

• A) Direct labor.
• B) Variable overhead.
• C) Fixed overhead that will be avoided if the part is bought from an outside vendor.
• D) Fixed overhead that will continue even if the part is bought from an outside vendor.
• E) Transportation-in charges assessed on external purchases.

---

Definitions:

Electronic Contracts

Legal agreements that are created, signed, or stored in digital form, often involving transactions or terms agreed upon through electronic means.

Postbox Rule

A legal principle that deems an offer as accepted once the acceptance has been posted, even if it is never received by the offeror.

Electronic Mail

A method of exchanging messages digitally through the internet or other computer networks.

Communication Means

Various methods or systems used to convey information or messages from one person or entity to another.