Shasta Company Is Trying to Decide Whether to Continue to Manufacture

question 15

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 currently being used to manufacture the component
• D) the unavoidable fixed manufacturing costs associated with the manufacture of the component

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Definitions:

Moral Principles

Fundamental guidelines that govern ethical behavior, reflecting what is considered right or wrong in society.

Ethical Egoist

A moral theory asserting that individuals should act in ways that serve their own self-interest, positing that this approach ultimately benefits society as a whole.

Psychological Egoism

The thesis that people always act for their own self-interest, even when it seems as if they are acting for other people’s benefit (for example, in giving to charity, the egoist would say, the person is simply making himself or herself feel self-righteous).

Basic Laws

Fundamental principles or legislations that form the foundation of a legal system or government constitution.