When Evaluating a Make-Or-Buy Decision, Which of the Following Does

question 185

Multiple Choice

When evaluating a make-or-buy decision, which of the following does NOT need to be considered?

• A)alternative uses of the production capacity
• B)the original cost of the production equipment
• C)the quality of the supplier's product
• D)the reliability of the supplier's delivery schedule

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Definitions:

Stock Split

A corporate action to increase the number of outstanding shares by dividing each share, which typically makes the stock more affordable.

Common Stock

A form of corporate equity ownership, representing a claim on a portion of the corporation's assets and earnings.

Stock Dividend

A dividend payment made in the form of additional shares of the company's stock rather than cash.

Par Value

The nominal or face value of a bond, stock, or coupon as indicated on a certificate or instrument.