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kenny6666 [7]
3 years ago
7

Owning provides ____ flexibility but can lead to ______ costs in the long termA-greater ; lowerB- greater; higherC- less; lower

D- less; higher
Business
1 answer:
Sliva [168]3 years ago
8 0

The answer is B. Owning provides greater flexibility (you own it, what you do with it is up to you) but since you own it, you are responsible for it. Whether you took out a loan for it or simply maintenance is all you, leading to higher costs in the long term.

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The The decision to take less salary in a year when the company was less profitable and employees' pay was cut is an example of Nishimatsu commitment to the company.

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Fremont Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $89 per unit. The
mario62 [17]

Answer:

A.Total cost 41 93 (52)

B. It would be much better to manufacture the carrying cases .

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Fremont Computer Company Differential Analysis

Make Alternative 1: Buy Alternative 2:

Differential effect on net income

Alternative 1 : Alternative 2: Differential effect

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Direct material 16 - 16

Direct labor 20 - 20

Variable 1 - 1

manufacture overhead (20×5%)

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manufacture overhead

Total cost 41 93 (52)

The Company should choose Alternative 1

which is Make carrying case

B. It would be much better to manufacture the carrying cases.

While Fixed factory overhead is less important to this decision.

Therefore in make or buy decision the selling price of the product will be less important because the selling price was not provided which means it does not have effect on the decision of buy or make.

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