Answer:
A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.
The three main types of contracts if you want to outsource are
- Time and materials Contract
- Fixed Price Contract
- Target Cost Contract
Explanation:
Make-or-buy decisions, like outsourcing decisions, speak to a comparison of the costs and advantages of producing in-house versus buying it elsewhere.
There are many factors at play that may tilt a company from making an item in-house or outsourcing it.
Make-or-buy decisions must be based on the relevant cost of each option.
Relevant costs in make-or-buy decisions include all incremental cash flows.
Any cost that does not change as a result of the decision should be ignored such as depreciation and indirect fixed costs.
Answer: A
Explanation: by purchasing supplies and services as a group
Answer:
Short-term incentive
Explanation:
The reason is that long term incentives are based on achiving goals that take more than a year and short term goals achievement duration is less than 12 months. This means that the profit maximization benefit is short term goal and the incentive on short term goal is short term incentive.
The company has gained the tax advantages by including the payment of the bonus in thier retirement plans which is an example of short term incentive.
<span>This means that there were customers that were wanting the Disney channel, but did not get it because it was too expensive. Once the price went down these customers bought the service. The cable company test showed that they should keep their prices for the Disney channel low to generate more revenue. Even if they only had one customer to begin with they would only be making $10.75, and when they lowed their prices they would be making at least $15.90.</span>
Answer:
The capital gain is $3.30
Explanation:
Capital gain = Ending price - Initial price
Initial price = [$2.20(1 + .031)]/(.093 − .031) = $36.58
Ending price = [$2.20(1 + (.031*4))]/(.093 − .031) = $39.88
Capital gains = $39.88 − 36.58 = $3.30
