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

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 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.

Under what situations should the company accept a special order for less than the current selling price?

Under what situations should the company accept a special order for less than the current selling price? Never. When the company thinks it can use the cheaper materials without the customer’s knowledge. When incremental revenues exceed incremental costs.

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Which of the following is an irrelevant cost?

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.

What costs are always relevant?

Relevant costs include differential, avoidable, and opportunity costs. Irrelevant costs include sunk and fixed overhead 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 of the following is the decision rule of a sell or process further decision?

sunk costs. The decision rule in a sell-or-process-further decision is: process further as long as the incremental revenue from processing exceeds: fixed processing costs.

Which steps do accountants mostly contribute to in the decision-making process?

Which steps do accountants mostly contribute to in the decision-making process? Determining and evaluating possible courses of action and then reviewing the results of the decision.

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.

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.

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.

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In what scenario would a special order be accepted?

The general rule is to accept a special order if the benefits exceed costs. Otherwise, turn down respectfully. If the business has excess capacity to fill the special order, it would accept if incremental sales revenue exceeds incremental variable costs.

What makes a cost relevant?

A relevant cost is a cost that only relates to a specific management decision, and which will change in the future as a result of that decision. The relevant cost concept is extremely useful for eliminating extraneous information from a particular decision-making process.

What is a relevant cost quizlet?

A relevant cost is a cost that differs between. Alternatives. A cost that can be eliminated, either in whole or part, by choosing one alternative over another. Avoidable cost. Blank costs are always relevant.

How would you distinguish between the relevant and irrelevant costs and revenues in short term decision making process?

The relevant costs affect the future cash flows, whereas the irrelevant costs do not affect future cash flows. The types of relevant costs are incremental costs, avoidable costs, opportunity costs, etc.; while the types of irrelevant costs are committed costs, sunk costs, non-cash expenses, overhead costs, etc.

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