Relevant Costs of a Make-Or-Buy Decision Include All of the Following

question 70

Multiple Choice

Relevant costs of a make-or-buy decision include all of the following EXCEPT:

• A)fixed salaries that will not be incurred if the part is outsourced
• B)current direct material costs of the part
• C)special machinery for the part that has no resale value
• D)material-handling costs that can be eliminated

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Definitions:

Weak Stimulus

A stimulus not strong enough to trigger a significant physiological response.

Skill Memory

The ability to perform tasks without conscious effort, acquired through repetition and practice, such as riding a bicycle.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences.

Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain down the length of the vertebral column.