In Deciding Whether to Manufacture a Part or Buy It

question 10

Multiple Choice

In deciding whether to manufacture a part or buy it from an outside supplier, which of the following is an irrelevant cost?

• A) Direct labor
• B) Variable overhead
• C) Fixed overhead that will be avoided if the part is purchased from an outside supplier
• D) Fixed overhead that will continue even if the part is purchased from an outside supplier

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Definitions:

Shifted

Refers to the transformation of a graph or equation that results in its movement to a different position on the coordinate plane, without altering its shape.

Coordinates

A set of values that show an exact position. On graphs, it usually refers to a pair of numbers that define a point in two-dimensional space.

Units

Standard quantities used to specify measurements.

Quadrants

The four regions of a Cartesian plane divided by the x-axis and y-axis.