Shasta Company Is Trying to Decide Whether to Continue to Manufacture

question 55

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:

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