Firefox File Edit View History Bookmarks Tools Window Help Exam 3 connect ACCOUN

Question

Firefox File Edit View History Bookmarks Tools Window Help Exam 3 connect ACCOUNTING Exam 3 Question 26 (of S0) 26. A company's approach to a make-or-buy decision: O Depends on whether the company is operating at or below the breakeven point O Depends on whether the company is operating at or below normal volume O involves an analysis of avoidable costs O Should utilize absorption fie., fullj costing for inventory purposes O Should consider an allocation of corporate headquarter expenses to the item in question

Explanation / Answer

Answer:

c.involves an analysis of avoidable costs.

Explanation: The resources available at the disposal of a company should be efficiently utilized before buying that from outside source. If total relevant costs of production is less than the cost to buying an item , it should be manufactured within the company. The relevant costs are those that can be avoided.

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.