Sunday, September 11, 2011

Relevant costs in a make-or-buy decision of a part include

ACCOUNTING

Multiple Choice

Relevant costs in a make-or-buy decision of a part include

a. setup overhead for the manufacture of the product using the outsourced part.

b. currently used manufacturing capacity that has alternative uses.

c. annual plant insurance costs that will remain the same.

d. corporate office costs that will be allocated differently.


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