Solution-Considered in differential analysis for

Considered in differential analysis for make-or-buy decision

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Reference no: EM133300825

Questions

1. A company manufactures a single product. The product's prime costs consists of:

a. direct labor and manufacturing overhead

b. direct materials, direct labor and manufacturing overhead

c. direct materials and direct labor

d. direct materials and manufacturing overhead

2. If BB is beginning balance, TI is transfers-in, TO is transfers-out and EB is ending balance, then the basic cost flow model is:

a. BB - TI - TO = EB

b. BB + TI - TO = EB

c. BB + EB -TO = TI

d. BB + TO - TI + EB

3. Which of the following costs are not considered in differential analysis for a make-or-buy decision?

a. fixed overhead that will continue if the items is purchased

b. indirect materials and indirect labor if the item is made internally

c. direct materials and direct labor if the item is purchased

d. variable overhead if the item is made internally

Reference no: EM133300825

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Considered in differential analysis for make-or-buy decision

Reference no: EM133300825

Reference no: EM133300825

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