Overall Company Profits Will Not Be Enhanced If a Buying

question 42

True/False

Overall company profits will not be enhanced if a buying division acquires products from outside suppliers at an annual cost that is less than the incremental cost to the supplying division within the company.

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Definitions:

Disposable Personal Income

The total income households have after taxes and other deductions, available for spending, saving, or investment.

Non-tax Payments

Fees or charges paid to the government that are not considered taxes, such as fines, licenses, or charges for public services.

Noncorporate Businesses

Businesses that are not incorporated and typically include sole proprietorships, partnerships, and family-owned entities.

Imports

Goods or services brought into one country from another for the purpose of trade.