Decisions About Whether a Producer of Goods or Services Will

question 214

True/False

Decisions about whether a producer of goods or services will insource or outsource are also called make-or-buy decisions.

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Definitions:

Idle Capacity

Unused or underused production capacity, where the facility is capable of producing more but is not due to lack of demand or other factors.

Activity-Based Costing

This costing method assigns overhead and indirect costs to specific activities, thus providing a more accurate reflection of the costs associated with producing specific products or services.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of a product, including indirect materials, indirect labor, and other expenses such as depreciation and maintenance.

Meeting With Clients

A scheduled gathering between a service provider or business representative and one or more clients to discuss services, products, or other business matters.