If the Unit Cost to Buy Something Is Less Than

question 149

True/False

If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs.

---

Definitions:

Incentive Wage Plans

A compensation strategy that rewards employees based on their performance or productivity.

Work Standards

The established criteria or benchmarks used to measure the quality and efficiency of work performed.

Production Team

A group of individuals who work together in the manufacturing or creation process of goods or services.

Perishable

Refers to goods that have a limited lifespan or durability and therefore need to be consumed or used within a certain period before they deteriorate.