Which of the Following Costs Is Relevant to a Make-Or-Buy

question 39

Multiple Choice

Which of the following costs is relevant to a make-or-buy decision?

• A)original cost of the production equipment
• B)annual depreciation of the equipment
• C)amount that would be received if the production equipment were sold
• D)cost of direct materials purchased last month and used to manufacture the component

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Definitions:

Paid Suggestion Systems

Programs within organizations that reward employees financially for submitting practical and useful suggestions for improvement.

Secrecy

The act of keeping information hidden from those who do not have the authority or right to know.

Managerial Responses

The actions or strategies that managers take in response to external or internal stimuli in the business environment.

Feedback

Information provided by agents regarding aspects of one's performance or understanding, intended to guide future performance or actions.