Yankton Industries Manufactures 20,000 Components Per Year

question 49

Multiple Choice

Yankton Industries manufactures 20,000 components per year. The manufacturing cost of the components was determined as follows: An outside supplier has offered to sell the component for $23.50.
What is the effect on income if Yankton Industries purchases the component from the outside supplier?

• A) $20,000 increase
• B) $20,000 decrease
• C) $80,000 decrease
• D) $80,000 increase

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Definitions:

Government Organizations

Public sector agencies or entities that operate at federal, state, or local levels to administer and implement policies and services.

Final Approval

The last stage of approval in a process, ensuring that all conditions or requirements have been met before moving forward.

Project Manager

An individual responsible for planning, executing, and closing projects, while managing the time, budget, and resources.

Project Scope

The part of project planning that involves determining and documenting a list of specific project goals, deliverables, tasks, costs, and deadlines.