Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product. Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

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Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

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How does opportunity cost enter into a make or buy decision?

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Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?

Answer 2

Question

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Expert Solution & Answer

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Answer 3

Question

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Expert Solution & Answer

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Answer 4

Question

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Expert Solution & Answer

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Answer 5

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Answer 6

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Answer 7

Chapter 11, Problem 10Q

To determine

Determination of opportunity cost relevant for make/buy decision describes concept and computation of opportunity applicable in case of make or buy decision with manufacturing the product internally, the facility which is being used somewhere has to be applied in production of respective product, resulting in the loss of revenue, considered as opportunity cost of manufacturing the product.

Thecomputation of opportunity cost of manufacturing the product which was the purchased from supplier earlier.

Answer 8

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Answer 11

Ch. 11 - What is a relevant cost?Ch. 11 - Define the following terms: incremental cost,...Ch. 11 - Are variable costs always relevant costs? Explain.Ch. 11 - Prob. 4Q Ch. 11 - “Variable costs and differential costs mean the...Ch. 11 - Prob. 6Q Ch. 11 - Prentice Company is considering dropping one of...Ch. 11 - Prob. 8Q Ch. 11 - What is the danger in allocating common fixed...Ch. 11 - Prob. 10Q

Solution Summary: The author explains the concept and computation of opportunity cost applicable in case of make/buy decision with manufacturing the product internally.

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