The manager of Hampton, Inc. is trying to decide whether to make or buy a component of the product it sells. Which of the following costs and benefits is not relevant to the decision?
A. Direct labor cost involved in making the component
B. Variable manufacturing overhead involved in making the component
C. The purchase price of the component if it is bought
D. The selling price of the product
Answer: D
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Indicate whether the statement is true or false
Gunner Construction, Inc has consistently used the percentage-of-completion method of recognizing revenue. During 2014, Gunner started work on a $2,500,000 fixed-price construction contract. The accounting records disclosed the following data for the year ended December 31 . 2014: Costs incurred ........................................ $ 465,000 Estimated cost to complete
............................ 2,085,000 Progress billings ..................................... 550,000 Collections ........................................... 350,000 How much loss should Gunner have recognized in 2014? a. $15,000 b. $35,000 c. $50,000 d. $315,000
The Internal Revenue Service (IRS) allows companies to use a depreciation method known as the ________
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Who is responsible for torts occurring within an individual condominium unit?
A) Association B) Unit owner C) There is no liability D) None of the above