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:

Government Policy

Actions and decisions made by the government to achieve certain goals or address specific issues within a country.

Antibiotic Overuse

The excessive or inappropriate use of antibiotics, contributing to antibiotic resistance, where bacteria evolve to become resistant to these medications.

Externality Internalized

A situation where a firm or individual takes into account the external costs or benefits of their actions, resulting in an outcome that reflects the true costs or benefits to society.

Smokestack Scrubbers

Pollution control devices that remove or neutralize harmful components from industrial exhaust gases before they are released into the atmosphere.