What costs are usually relevant in a make-or-buy decision?
Answer to relevant QuestionsIn deciding whether to manufacture a part or to buy it from an outside supplier, name a cost that would not be relevant to that short-run decision.Switzer Corporation makes motorcycle engines. The company’s records show the following unit costs to manufacture part #61645:Direct materials ......... $12Direct labor ......... $15Variable overhead ........ $20Fixed ...List and describe some of the major factors and information sources typically used in sales forecasting.Lazy Day Donuts makes powdered donuts that are sold by the dozen. Each box of a dozen donuts requires ½ pound of flour. The company began the year with 20,000 pounds of flour on hand, but would like to have just 10,000 ...Cookies and Cream begins business on January 1 of the current year and sells delicious chocolate chip cookies for $2.50 per box. The company’s founder and lead marketing guru estimates first-quarter sales (in boxes) as ...
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