s//newconnesumh alytical Assessm .t0 Help Save&Exit; Easton Company makes and se

Question

s//newconnesumh alytical Assessm .t0 Help Save&Exit; Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year Cost Items Appearing on the Income Statement Haterials cost ($10 per unit) Compan esident's salar alarles of odeinistrative personnel Research and deve abor cost ($4 Advertising osts (150,000 Inspection costs Easton can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would stll continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision? Multiple Choice Materials cost Shipping and nandling oen e

Explanation / Answer

Material cost only relevant to outsource the decision.

Expalanation

Distribution costs (shipping, handling, and sales commissions) and inspection costs don’t change. Your company will still perform those tasks and incur the costs.

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