Asked by Lonette McMorris on Jul 24, 2024
Verified
If management decides to buy part U98 from the outside supplier rather than to continue making the part, what would be the annual financial advantage (disadvantage) ?
A) ($30,800)
B) $25,200
C) $30,800
D) ($25,200)
Financial Advantage
This refers to the benefit gained by an entity in a financial context, which could include lower costs, higher revenues, or other monetary gains.
Outside Supplier
An external company or entity that provides goods or services to another company, typically part of the supply chain.
- Get acquainted with the idea of make-or-buy decisions and their role in shaping financial results.
- Identify relevant costs in make-or-buy and special order decisions.
Verified Answer
SK
Learning Objectives
- Get acquainted with the idea of make-or-buy decisions and their role in shaping financial results.
- Identify relevant costs in make-or-buy and special order decisions.
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