FAQ: Which Of The Following Would Generally Not Affect A Make-or-buy Decision?

Which of the following does not affect buy decision?

Which of the following will not affect a make-or-buy decision? Differential fixed costs. In a make or buy decision, opportunity costs are: added to the make total cost.

Which decision will involve no incremental revenues?

The make or buy decisions will not involve any incremental revenues. The make or buy decisions involve making an in-house production facility or purchase from a third-party manufacturer.

What role does the amount of the trade-in allowance on old equipment play in the analysis of a decision to retain or replace an asset?

What role does a trade-in allowance on old equipment play in a decision to retain or replace equipment? A. It is relevant since it increases the cost of the new equipment. It is relevant since it reduces the cost of the new equipment.

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In which steps of the management decision making process does accounting make its primary contribution?

Terms in this set (24) In which steps of the management decision-making process does accounting make its primary contribution? Identifying the problem and making a decision. Evaluating possible courses of action and reviewing the results of the decision.

Which is the first step in the management decision making process?

The first step in making the right decision is recognizing the problem or opportunity and deciding to address it. Determine why this decision will make a difference to your customers or fellow employees.

What costs are always relevant?

Relevant costs include differential, avoidable, and opportunity costs. Irrelevant costs include sunk and fixed overhead costs.

Which of the following stages of the management decision-making process is improperly sequenced?

sunk cost. Which of the following stages of the management decision – making process is improperly sequenced? Assign responsibility for the decision → Identify the problem.

Which one of the following is an alternative name for incremental analysis?

Incremental analysis helps to determine the cost implications of two alternatives. It is also known as the relevant cost approach, marginal analysis, or differential analysis.

What role does a trade in allowance on old equipment play in a decision to retain or replace equipment group of answer choices?

What role does a trade-in allowance on old equipment play in a decision to retain or replace equipment? It is relevant since it reduces the cost of the new equipment. the expected variable costs of the new equipment.

What is a cost that Cannot be changed by any present or future decision called?

Irrelevant costs are those that will not change in the future when you make one decision versus another. Examples of irrelevant costs are sunk costs, committed costs, or overheads as these cannot be avoided.

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What is the process of evaluating financial data that change?

The process of evaluating financial data that change under alternative courses of actionis called a. double entry analysis.

What are the relevant costs in a make-or-buy decision?

Relevant costs in make-or-buy decisions include all incremental cash flows. Any cost that does not change as a result of the decision should be ignored such as depreciation and indirect fixed costs.

Which of the following factors are not qualitative factors in a make-or-buy decision?

Question: Which of the following is not a qualitative factor to be considered in a make-or-buy decision? Possible lost jobs from buying outside supplier’s ability to satisfy quality standards Direct materials and direct labor costs from making Outside supplier’s ability to meet production schedule.

What do you mean by incremental revenue?

Incremental revenue is the profit a business gains from an increase in sales. It can be used to determine the additional revenue generated by a certain product, investment or direct sale from a marketing campaign when the quantity of sales has grown. Incremental revenue is often compared to the cost of a product.

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