Shasta Company Is Trying to Decide Whether to Continue to Manufacture

question 65

Multiple Choice

Shasta Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier. Which of the following is irrelevant with respect to this decision?

• A)the quality of the component purchased from the outside supplier
• B)the outside supplier's ability to deliver the component on a timely basis
• C)the alternative uses of the facilities being used to currently manufacture the component
• D)the unavoidable fixed manufacturing costs associated with the manufacture of the component

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Definitions:

Personal Fulfillment

A sense of satisfaction or achievement an individual feels upon meeting personal goals, values, or desires.

Shelter

A structure that provides protection from the environment, including homes, buildings, and temporary accommodations.

Physiological Need

A basic bodily requirement that people need to survive, such as food, water, and shelter.

Maslow Hierarchy

A theory of human motivation depicted as a pyramid, with basic needs at the base ascending to self-actualization needs at the top.