Altec Services Corporation Has Relevant Costs of $40 Per Unit

question 135

Multiple Choice

Altec Services Corporation has relevant costs of $40 per unit to manufacture 1,000 units of Part A.A current supplier offers to make Part A for $35 per unit.Alternatively,the company can rent out the capacity for $25,000.If capacity is constrained,the opportunity cost of buying Part A from the supplier is ________.

• A) $0
• B) $5,000
• C) $35,000
• D) $25,000

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Definitions:

Recruitment Process

The entire procedure of identifying, attracting, screening, shortlisting, and interviewing candidates for jobs within an organization.

Preliminary Contacts

Involves initial interactions or communications established before entering into formal agreements or detailed discussions.

Selection Process

The method by which candidates are screened and chosen for a position within an organization, based on criteria such as skills, experience, and fit.

Physical Examination

A thorough medical assessment of a person to determine their physical health status.