Which of the Following Costs Are not Considered in a Differential

question 128

Multiple Choice

Which of the following costs are not considered in a differential analysis for a make-or-buy decision?

• A) Indirect materials and indirect labor if the item is manufactured internally.
• B) Direct materials and direct labor if the item is purchased.
• C) Variable overhead if the item is manufactured internally.
• D) Fixed overhead that will continue if the item is purchaseD.
• A cost that does not change is not included in the analysis

---

Definitions:

Seminars

Educational sessions or meetings where a group of people discuss a specific topic, often with an expert speaker.

Nursing Assistive Personnel

Personnel trained to assist nursing staff in routine tasks and direct patient care services.

Direct Care Experience

Hands-on work with patients in a healthcare setting, involving personal interaction and the provision of clinical services.

Vital Sign Measurement

The process of monitoring the essential body functions, including temperature, pulse, respiration, and blood pressure, to assess an individual's health status.