Cleese Company Currently Purchases a Finished Part from Idle Company,but

question 9

Multiple Choice

Cleese Company currently purchases a finished part from Idle Company,but is considering using it excess capacity to make the part.Normal capacity is 20,000 hours,but Cleese is currently running at 17,000 hours.Details about budgeted factory overhead follow: Direct costs to manufacture 1,000 parts in-house would be: The relevant unit cost Cleese should use to decide whether to make or buy the part is:

• A)$31.00
• B)$24.50
• C)$27.00
• D)$26.00

Comprehend the conditions necessary for absolute purchasing power parity.

Recognize the methods of calculating NPV in international finance and their implications.

Understand the impacts of inflation on currency value and exchange rates.

Recognize the impact of appearance and credibility in persuasion.

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Definitions:

Direct Organizational

A management style or structure where communication and decision-making processes follow a straightforward, top-down approach.

Adjustment Message

A form of communication intended to address and resolve discrepancies, complaints, or issues faced by customers, contributing to customer satisfaction.

Business Letters

Formal written communications used within or between organizations for professional correspondence.

Significant Message

Information or communication that holds considerable importance or value to its audience.