Julianna LLC Is Facing a Make-Or-Buy Decision and Must Decide

question 101

Multiple Choice

Julianna LLC is facing a make-or-buy decision and must decide whether to meet its needs internally or to acquire goods or services from external sources.Julianna LLC adopted an activity-based costing system and found that its overhead costs were more than 50 percent of total product costs and the managers wanted to identify the activities that drove overhead costs.Based on the cost of activities,the management decided to outsource many of the activities that drove overhead costs.The expected result of this action would be that
Overhead costs cost of goods purchased from suppliers

• A)decreased increased
• B)decreased decreased
• C)increased increased
• D)increased decreased

Understand the components and purpose of a Balance Sheet.

Comprehend current tax laws and their implications on investments.

Calculate the depreciation and understand its impact on the Balance Sheet.

Define and calculate earnings before interest and taxes (EBIT).

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