Costs Relevant to a Make-Versus-Buy Decision Typically Include Variable Manufacturing

question 111

Multiple Choice

Costs relevant to a make-versus-buy decision typically include variable manufacturing costs as well as:

• A) Avoidable fixed costs.
• B) Factory depreciation.
• C) Unavoidable costs, both production and marketing.
• D) Property taxes on the manufacturing facility.
• E) Factory administrative costs (e.g., salaries).

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Definitions:

Operant Conditioning

A method of learning where the potency of certain actions is changed via positive reinforcement or negative punishment.

Prejudicial Stereotypes

Oversimplified and widely held beliefs about a particular group of people that are often negative and unfair.

Insidious

Proceeding in a gradual, subtle way but with harmful effects, often without being noticed until it is too late.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or socially acceptable in a given group or society.