Asked by Lonette McMorris on Jul 24, 2024

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If management decides to buy part U98 from the outside supplier rather than to continue making the part, what would be the annual financial advantage (disadvantage) ?

A) ($30,800)
B) $25,200
C) $30,800
D) ($25,200)

Financial Advantage

This refers to the benefit gained by an entity in a financial context, which could include lower costs, higher revenues, or other monetary gains.

Outside Supplier

An external company or entity that provides goods or services to another company, typically part of the supply chain.

  • Get acquainted with the idea of make-or-buy decisions and their role in shaping financial results.
  • Identify relevant costs in make-or-buy and special order decisions.
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SK
Satwinder KumarJul 28, 2024
Final Answer :
A
Explanation :