Which of the Following Would NOT Be Considered in a Make-Or-Buy

question 36

Multiple Choice

Which of the following would NOT be considered in a make-or-buy decision?

• A)fixed costs that will no longer be incurred
• B)variable costs of production
• C)potential rental income from space occupied by the production area
• D)unchanged supervisory costs

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Definitions:

Reasonable Person

A reasonable person is a legal standard used to represent a hypothetical person who exercises average care, skill, and judgment in conduct, serving as a comparative standard in negligence cases.

Law of Torts

A component of civil law dealing with the compensation of victims for harm caused by someone’s negligence or intentional acts.

Standard of Care

The degree of attentiveness, caution, and prudence that a reasonable person in the circumstances would exercise.

Sixteen-Year-Old

A term generally referring to an individual who is 16 years of age.