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:

Accountants Demand

The requirement or need for accounting professionals in the marketplace, largely influenced by the economic condition and regulatory environment.

Earnings Decrease

A situation in which a company or individual’s income or profit declines compared to a previous period.

Future Supply

The quantity of a good or service that producers are willing and able to sell at various prices at a specific future date.

Computer Technicians

Professionals who maintain and repair computer systems and networks, ensuring that they operate efficiently.