Question: A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit. Do you agree? Explain briefly. A.
"A component part should be purchased whenever the purchase price is less than its total manufacturing cost per unit." Do you agree? Explain briefly.
A.No. Some variable costs may not differ among the alternatives under consideration and, hence, will be irrelevant. Some fixed costs may differ among the alternatives and, hence, will be relevant.
B.No. Some variable costs may not differ among the alternatives under consideration and, hence, will be relevant. Some fixed costs may differ among the alternatives and, hence, will be irrelevant.
C.Yes. Some variable costs may not differ among the alternatives under consideration and, hence, will be relevant. Some fixed costs may differ among the alternatives and, hence, will be irrelevant.
D.Yes. Some variable costs may not differ among the alternatives under consideration and, hence, will be irrelevant. Some fixed costs may differ among the alternatives and, hence, will be relevant.
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