Which of the following statements is true when a company is considering whether to make or buy a component of a product that it currently manufactures?
A) If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally.
B) If the current fixed overhead is avoidable when outsourcing, the product should be outsourced.
C) If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should be outsourced.
D) If the cost of outsourcing is greater than the direct materials cost of making internally, the product should continue to be made internally.
C
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If a job candidate receives a job offer while other interviews are still pending, how should he or she ask the employer for a time extension?
What will be an ideal response?
If a company purchases $3,200 worth of inventory with terms of 2/10, n/30 on March 3 and pays April 2, then the amount paid to the seller would be
a. $3,136 b. $3,150 c. $3,168 d. $3,200
Which of the following is not a goal of a system of internal control over merchandising transactions?
A) Keep credit losses as low as possible. B) Prevent the theft of cash and inventory. C) Keep the maximum amount of inventory on hand at all times. D) Keep enough cash on hand to take advantage of purchase discounts.
Explain Section 552 of the Restatement (Second) of Torts
What will be an ideal response?