Relevant cost
Not what you're looking for?
The following standard costs pertain to a component part manufactured by Bor Company:
Direct materials $ 2
Direct labor 14
Manufacturing overhead 50
Standard cost per unit $66
An outside supplier has offered to supply all of the parts needed by Bor Company for $50 each. The 50% of the manufacturing overhead cost that is fixed would be unaffected by this decision. In the decision to "make or buy," what is the relevant unit cost to make the part internally?
$41
$49
$33
$53
Purchase this Solution
Solution Summary
The solution explains how to determine the relevant costs if the part is made internally
Purchase this Solution
Free BrainMass Quizzes
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Organizational Behavior (OB)
The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.