The Cost to Produce Part a Was $10 Per Unit

question 49

Multiple Choice

The cost to produce Part A was $10 per unit in 2017 and in 2018 it has increased to $11 per unit.In 2018,Supplier XYZ has offered to supply Part A for $9 per unit.For the make-or-buy decision:

• A)incremental costs are $1 per unit.
• B)incremental revenues are $2 per unit.
• C)net relevant costs are $1 per unit.
• D)differential costs are $2 per unit.

---

Definitions:

Ethical Decision-making

The approach of examining and deciding on choices in accordance with ethics.

Privacy Settings

Controls available on digital platforms and software that allow users to manage their personal information and decide who can see it and how it can be used.

Nonprofit

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable activities.

Marketing Campaign

A strategic plan designed to promote a product, service, or brand through various forms of media to achieve specific objectives.