Steven Company's Records Reveal the Following: Variable Costs

question 8

Multiple Choice

Steven Company's records reveal the following: Variable costs:
The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division A wants to transfer the parts to Division B for $81 each.Division B can buy the parts for $75 per unit from an outside supplier.Division A has no excess capacity.The manager of Division B should ________.

• A)buy the parts from the outside supplier for $75 each
• B)buy the parts from Division A at $81 each
• C)buy the parts from an outside supplier for $76 each
• D)none of the above

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Definitions:

Compasses

Instruments used for navigation and orientation that show direction relative to the geographic cardinal directions.

Muffins

A small, baked item that is typically sweet, made from batter or dough.

Cookies

Small pieces of data stored on a user's computer by a web browser, mainly used to track and remember information about the user's activities and preferences.

Exchange

The act of trading goods, services, or currencies between parties, either directly or through a medium of exchange like money.