Weygandt, Financial & Help I System An me: 06:3 8 PM / Remaining: 21 min. Questi

Question

Weygandt, Financial & Help I System An me: 06:3 8 PM / Remaining: 21 min. Question 1 Which statement is true concerning the decision rule on whether to make or buy? O The company should buy assuming no additional fixed costs are incurred. O The company should buy if the cost of buying is less than the cost of producing. O The company should buy as long as total revenue exceeds present revenues. O The company should buy if the incremental revenue exceeds the incremental costs. LINK TO TEXT Question Attempts: 0 of 2 used SAVE FOR LATER SUBHIT ANS

Explanation / Answer

D.the company should buy if the incremental revenue exceeds the incremental costs.

In a make or buy decision, buying is resorted to when the incremental revenue exceeds the incremental costs.

rest of the options do not make a proper criteria for making the correct decision in a make or buy situation.

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