Xebex Pty Ltd Is Considering Whether to Make or Buy

question 89

Multiple Choice

Xebex Pty Ltd is considering whether to make or buy a component used in the production of Faz Machines.The annual cost of producing the 100 000 components used by the company is as follows.If Xebex were to discontinue production of the component,direct fixed manufacturing costs would be reduced by 80 per cent.What are the irrelevant costs in the decision?

• A) $50 000
• B) $70 000
• C) $80 000
• D) $100 000

---

Definitions:

Self-actualization

The achievement or satisfaction of one's abilities and possibilities, viewed as a motivation or necessity inherent in all people.

Self-fulfilled

The accomplishment of something that one has desired or predicted for oneself, often without external help.

Creative Extent

The degree to which something demonstrates originality, imagination, or innovation in its design, approach, or execution.

Self-actualization

The act of achieving or fulfilling one's skills and potential, seen as a fundamental desire or requirement in everyone.