Shasta Company Is Trying to Decide Whether to Continue to Manufacture

question 65

Multiple Choice

Shasta Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier. Which of the following is irrelevant with respect to this decision?

• A)the quality of the component purchased from the outside supplier
• B)the outside supplier's ability to deliver the component on a timely basis
• C)the alternative uses of the facilities being used to currently manufacture the component
• D)the unavoidable fixed manufacturing costs associated with the manufacture of the component