Which of the Following Costs Is Relevant to a Make-Or-Buy

question 30

Multiple Choice

Which of the following costs is relevant to a make-or-buy decision?

• A)original cost of the production equipment
• B)annual depreciation of the equipment
• C)the amount that would be received if the production equipment were sold
• D)the cost of direct materials purchased last month and used to manufacture the component

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Definitions:

Job Autonomy

Refers to the degree to which a position allows an employee to make decisions about scheduling, procedures, and the methodology used in completing work tasks.

Skill Variety

The degree to which a job requires a variety of different activities using different skills and talents.

Increasing Social

The process of enhancing social interaction, connection, and support networks among individuals or groups.

Job Resources

Refers to the physical, psychological, social, or organizational aspects of a job that are necessary for achieving work goals, reducing job demands, and stimulating personal growth and development.