ACCT 1020 600-Fall 2017-COC DL Ma est Exam # 11: Chapter 25 Time Remaining: 00:2

Question

ACCT 1020 600-Fall 2017-COC DL Ma est Exam # 11: Chapter 25 Time Remaining: 00:26:16 Submit Tes his Question: 1 pt 17 of 20 (16 complete) This Test: 20 pts possibl Shasta Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier. Which of the following is irrelevant with respect to this decision? A. the quality of the component purchased from the outside supplier O B. the unavoidable fixed manufacturing costs associated with the manufacture of the component O C. the outside suppliers ability to deliver the component on a timely basis D. the alternative uses of the facilities currently being used to manufacture the component Click to select your answer th isvascript doExercioel15 11 59pm Ch 26 LO 182 Lecture videos 12/03/17 1 50pm 12/03/1 Ch 26 LO4 Lecture vvideos 11 59pm

Explanation / Answer

Ans) Option (B) Unavoidable fixed cost

Reason: even if manufactured inside or buy from outside the un avoidable Fixed cost will not change there is no savings. Its already incurred therefore its irrelevent in decision making.

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