The choice of the absorption or contribution approach affects the manufacturing cost per unit because the manufacturing cost per unit is _____.

A higher if the absorption approach is used

Bhigher if the contribution approach is used

C the same regardless of the approach

D independent of the approach

_____ are a qualitative factor of a make-or-buy decision.

a varaiabke manfacturing cos

Bavoidable cots

C Log term relationsships wih supliers

Imprecise but relevant information can be useful.

TRUE OR FALSE

In a make-or-buy decision, if facilities are and will remain idle when the decision is made to not make a part internally, then the opportunity cost is zero.

TRUE OR FALSE

The contribution margin is computed using variable manufacturing costs, and variable selling and administrative costs

THANKS