Multiple Choice Questions on In lsquo make or buy rsquo decision it is profitable to buy from outside only when the supplier rsqu........... for SEBI Grade A ( Officer) Exam Preparation

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Multiple Choice Questions

In lsquo make or buy rsquo decision it is profitable to buy from outside only when the supplier rsqu...........

Costing - Phase (I & II) Basics of Cost Control and Analysis
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    In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. 

    Fixed Cost 

    Incorrect Answer

    Variable Cost 

    Correct Answer

    Total Cost 

    Incorrect Answer

    Prime Cost

    Incorrect Answer
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    Explanation:

    In make or buy decision, management compare purchase price and variable cost of manufacturing and accordingly decision whether to purchase of manufacture will be taken.

    By: Vikas Goyal
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