The Cost to Produce Part a Was $20 Per Unit

question 30

Multiple Choice

The cost to produce Part A was $20 per unit in 2013 and in 2014 it has increased to $22 per unit. In 2014, Supplier ABC has offered to supply Part A for $18 per unit. For the make-or-buy decision ________.

• A) incremental revenues are $4 per unit
• B) incremental costs are $2 per unit
• C) net relevant costs are $2 per unit
• D) differential costs are $4 per unit

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Definitions:

Intelligence Scores

Numeric assessments derived from intelligence tests that aim to quantify a person's intellectual abilities compared to a statistical norm.

Modernized Countries

Nations or states that have experienced significant progress in technological, scientific, and socioeconomic development.

Naturalistic

Pertaining to observing subjects in their natural environments without intervention from the researcher.

Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that intelligence is not a single general ability but consists of multiple intelligences, including linguistic, logical-mathematical, musical, bodily-kinesthetic, spatial, interpersonal, and intrapersonal intelligences.