Cirrus Company has calculated that the cost to make a component is made up of direct materials

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Cirrus Company has calculated that the cost to make a component is made up of direct materials £120, direct labour £60, variable overhead £30 and fixed overhead of £25. Another company has offered to make the component for £140.

If the company has spare capacity and wishes to retain its skilled labour force, should it make or buy the component?

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Accounting For Managers Interpreting Accounting Information For Decision Making

ISBN: 9780470016091

2nd Edition

Authors: Paul M. Collier

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Question Posted: May 27, 2024 08:01 AM

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Cirrus Company has calculated that the cost to make a component is made up of direct materials

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Accounting For Managers Interpreting Accounting Information For Decision Making

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