Answer the Following Question(s)using the Information Below

question 133

Multiple Choice

Answer the following question(s) using the information below.Grant's Kitchens is approached by Ms.Tammy Wang, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Grant's Kitchens has excess capacity.Ms.Wang wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.
-For make-or-buy decisions, a supplier's ability to deliver the item on a timely basis is considered a(n)

• A)qualitative factor.
• B)relevant cost.
• C)differential factor.
• D)opportunity cost.
• E)quantitative factor.

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Definitions:

Timely Basis

Performing or completing tasks within an appropriate or specified period to achieve desired outcomes.

Workstation

A specific area equipped with the necessary tools and technology for an individual to perform their job tasks.

Supply Chain Management

The management of the flow of goods and services, involving the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption.

Resource Supplies

Resource supplies denote the available stock of materials, tools, and other assets that can be drawn on by a person or organization to function effectively.