Relevant Costs in a Make-Vs

question 3

Multiple Choice

Relevant costs in a make-vs.-buy decision of a part include:

• A) Corporate headquarter costs that will be allocated differently depending on the decision option chosen.
• B) Setup overhead costs for the manufacture of the product using the outsourced part.
• C) The cost of currently used manufacturing capacity that has alternative uses if the part is outsourced.
• D) Factory-related insurance cost.
• E) Corporate (i.e., headquarter) salaries.

---

Definitions:

Pause

A temporary stop or break in action or speech, used for effect, hesitation, or to separate ideas.

Adaptive Value

The extent to which a trait or behavior positively affects an organism's survival and reproductive success.

Lighted Gas Stoves

Gas stoves that are ignited and in operation, producing a flame for cooking or heating purposes.

Slight Burn

A minor injury to skin caused by heat, electricity, chemicals, light, radiation, or friction.