+1-415-670-9189
info@expertsmind.com
Relation to the decision to make or buy the component
Course:- Accounting Basics
Reference No.:- EM13129381




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

A company is currently making a necessary component in house (the company is producing the component for its own use). The company has received an offer to buy the component from an outside supplier. A machine is being rented to make the component. If the company were to buy the component, the machine would no longer be rented. The rent on the machine, in relation to the decision to make or buy the component, is:

1-sunk and therefore not relevant.

2-avoidable and therefore not relevant.

3-avoidable and therefore relevant.

4-unavoidable and therefore relevant.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a f
With activity-based costing, businesses can respond quickly and efficiently to demands for greater regulation. Companies that do not have internal expertise or capacity to c
A piece of equipment purchased on January 1, 2011, for $16,000 was estimated to have a residual value of $4,000 at the end of its three-year useful life. If the equipment wa
ACC 400- Answer the following question with a minimum of 125 words. What are some reasons a company may have an unfavorable labor efficiency variance? How do you think a com
Discount rate Expected rate of return 2.5% 2.8% Thousands of U.S. Instructions Use the information on Kyowa to respond to the following requirements. (a) What are the key di
The 39 percent and 38 percent tax rates both represent what is called a tax "bubble." Suppose the government wanted to lower the upper threshold of the 39 percent marginal tax
Depreciation has been taken up to the end of the year. The company found a company that is willing to buy the equipment for $30,000. What is the amount of the gain or loss o
Prepare an excel worksheet with 3 tabs. A fair value allocation that shows the calculation of goodwill relative to the acquisition, and calculates the annual amount of amort