A Key Factor in a Make-Or-Buy Decision Is _____

question 99

Multiple Choice

A key factor in a make-or-buy decision is _____.

• A)whether or not there are idle facilities
• B)the amount of the sunk costs
• C)gain or loss on the disposal of equipment
• D)the total joint costs

Analyze the advantages and disadvantages of different forms of business ownership and their impacts.

Identify and understand the characteristics of different business forms including sole proprietorships, partnerships, limited partnerships, corporations, and limited liability companies.

Recognize the tax implications and liability issues associated with various business structures.

Understand the concept of derivative securities and their underlying value basis.

---

Definitions:

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Work in Process

Inventory that includes the cost of raw materials, labor, and manufacturing overhead for products that are in various stages of production but not yet complete.

Finished Goods

Finished goods that are prepared and available to be bought by customers.

Work in Process Inventory

Inventory that is in the process of being manufactured but is not yet complete.