Which of the following statements is true when a company is considering whether or not to make or buy (outsource) 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.
Correct Answer:
Verified
Q1: Speed Quest Inc.manufactures speed boats.Currently,the company
Q3: Which of the following would not be
Q4: A local science museum normally sells entry
Q7: Which of the following costs is least
Q8: Which of the following is not a
Q8: JNR Products produces and sells plastic soft
Q10: Collegiate Products produces and sells padded stadium
Q11: Preston Wade
Preston Wade, a local craftsman,
Q18: Which of the following types of costs
Q19: When are fixed costs relevant in a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents