Quick Answer: Which Of The Follwoing Is Most Likely Relevant In A Make Or Buy Decision?

Which of the following is most likely relevant in a make or buy decision group of answer choices?

Terms in this set (10) Which of the following is most likely relevant in a make-or-buy decision? In a make-or-buy decision, the original purchase price of equipment that is currently used in the manufacturing process is usually a relevant cost because the equipment can be sold for its salvage value.

Which of the following cost is relevant to a make or buy decision of a particular part of a product?

Explanation: Direct labor cost is a relevant expense that is to be considered in a make or buy decision making process.

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Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment?

joint costs. difference between future cost savings and the new equipment’s costs. Which of the following is relevant information in a decision whether old equipment presently being used should be replaced by new equipment? It is relevant since it reduces the cost of the new equipment.

Which of the following are relevant in short term decision-making purchase price of new?

Which of the following are relevant in short – term decision making? Purchase price, reduction in variable costs, additional revenue and opportunity costs are relevant in short – term decision making.

What is make buy decision explain with examples?

A Make or Buy Decision is a decision made to either manufacture a product/ service in house or buy it from outside suppliers (outsourcing) based on cost-benefit analysis.

What is the make-or-buy decision?

A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.

When should a special order be accepted?

A special order generally should be accepted if: A) its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.

Which of the following costs are always irrelevant in decision making?

Sunk costs are those costs that happened and there is not one thing we can do about it. These costs are never relevant in our decision making process because they already happened! These costs are never a differential cost, meaning, they are always irrelevant.

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When opportunity costs exist they are always relevant?

When opportunity costs exist, they are always relevant. When capacity is constrained, relevant costs equal incremental costs plus opportunity costs. If the $20,000 spent to purchase inventory could be invested an earn interest of $500, then the opportunity cost of holding inventory is $20,000.

What is the relevant range?

The relevant range is the range of activity where the assumption that cost behavior is a straight line (linear) is reasonably valid. With variable costs then, the relevant range will be the range where the cost of adding one more, will be the same as the last.

Which of the following does not influence the make-or-buy decision?

Which of the following will not affect a make-or-buy decision? Differential fixed costs.

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.

Which cost is relevant in decision-making?

Relevant cost is a managerial accounting term that describes avoidable costs that are incurred only when making specific business decisions. The concept of relevant cost is used to eliminate unnecessary data that could complicate the decision-making process.

Which is relevant in short-term decision-making?

In short-term decision-making, costs are considered to be relevant to the decision only if they are different as a direct result of the decision. Relevant costs include marginal or differential costs – these are the costs which differ between alter- natives.

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