One Reason a Computer Manufacturer May Make Its Own Microchips

question 103

Multiple Choice

One reason a computer manufacturer may make its own microchips rather than buy them is that:​

• A)it can maintain control over the quality during production.
• B)the total cost of components is the same as the price of chips purchased from a chip manufacturer.
• C)there is a large number of microchip suppliers in the market.
• D)its managers place a high value on their time.
• E)all the microchip suppliers offer identical or homogenous products.

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Definitions:

Company Accounts

Financial records that detail the financial activities and condition of a business.

Business Transactions

Exchanges involving economic consideration between two entities that affect the financial position of a business.

Debits

Entries that are recorded on the left side of a ledger account which increase asset or expense accounts, or decrease liability, equity, or revenue accounts.

Credit Side

The right side of an accounting ledger where credits are recorded, often indicating a decrease in assets or an increase in liability or equity.