Deciding Whether to Make a Component Part or to Purchase

question 163

Multiple Choice

Deciding whether to make a component part or to purchase it, would be an example of which cost allocation purpose?

• A)to provide information for economic decisions
• B)to motivate managers
• C)to determine employee's wages
• D)to measure income and assets for reporting to external parties
• E)to motivate employees

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Definitions:

Anterograde Amnesia

A condition that prevents an individual from forming new memories after the event that caused the amnesia, though memories from before the event remain intact.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most commonly associated with prolonged alcoholism.

Somatic Symptom Disorder

A mental disorder in which a person has significant focus on physical symptoms, such as pain, that causes major emotional distress and problems functioning.

Illness Anxiety Disorders

A condition characterized by excessive worry about having or acquiring a serious illness, despite medical reassurance.