When Making a Make-Or-Buy Decision for a Part,what Items Are

question 88

Multiple Choice

When making a make-or-buy decision for a part,what items are relevant to the decision?

• A)variable costs of making the part
• B)fixed costs that the company can avoid by not making the part
• C)rental income from idle plant when not making the part
• D)all of the above

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Definitions:

Salaries Expense

An expense recorded to represent wages or salaries paid to employees.

Salaries Payable

The liability account that contains the amounts of any salaries owed to employees, which have not yet been paid.

Supplies Account

An account used to track the costs of small items or materials that are used in the operations of a business.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period, ensuring the financial statements reflect accurate and up-to-date information.