Alpha Co Can Produce a Unit of Beta for the Following

question 71

Multiple Choice

Alpha Co. can produce a unit of Beta for the following costs: An outside supplier offers to provide Alpha with all the Beta units it needs at $60 per unit. If Alpha buys from the supplier, Alpha will still incur 40% of its overhead. Alpha should:

• A) Buy Beta since the relevant cost to make it is $72.
• B) Make Beta since the relevant cost to make it is $56.
• C) Buy Beta since the relevant cost to make it is $48.
• D) Make Beta since the relevant cost to make it is $48.
• E) Buy Beta since the relevant cost to make it is $56.

Grasp the concept of sustainability and its application within the finance and corporate sectors for the betterment of future generations.

Comprehend the nature and sources of ethical dilemmas in business.

Identify and explain different perspectives on ethical behavior in business contexts.

Recognize the ethical issues companies face when operating globally and form an opinion on how these challenges can be addressed.

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Definitions:

Division Profits

The earnings generated from a specific department or segment within a larger organization.

Profit Centers

Segments or divisions within a company that are directly responsible for generating a significant portion of the company's profits.

Division Profits

The earnings attributive to a specific division or branch of a larger company, often used to assess the performance of that segment.

Profit Centers

Profit centers are segments, branches, or divisions of a company that are treated as a separate business, responsible for generating their own revenues and profits.