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.

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Definitions:

Ambiguous Visual Cliff

A psychological experiment setup to investigate depth perception and fear of falling in infants.

Emotion

A complex psychological state that involves an individual's subjective experience, physiological response, and behavioral or expressive response.

Therapeutic Hormone

Hormones used in medical treatment to replace, regulate, or augment naturally occurring hormones in the body.

Melatonin

A hormone produced by the pineal gland that regulates sleep-wake cycles and is influenced by light exposure.