Which of the Following Is a Relevant Cost to Be

question 84

Multiple Choice

Which of the following is a relevant cost to be included in a make-or-buy decision?

• A) fixed salaries that will not be incurred if the part is outsourced
• B) pension costs to the current employees
• C) increase in the cost of repairing of all equipment of the firm
• D) material-handling costs that cannot be eliminated even if the product is outsourced

Calculate throughput time for order processing.

Compute manufacturing cycle efficiency (MCE) and understand its relevance.

Determine the percentage of non-value-added activities in production time.

Calculate delivery cycle time.

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