Buying the division elects


When a buying division elects to purchase from an outside supplier:

a) the impact on overall company profits is usually not considered in the decision.

b) only fixed costs should be included in the decision analysis.

c) the price from the outside supplier is likely to be more than the incremental cost to the supplying division.

d) overall company profits should be enhanced.

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Accounting Basics: Buying the division elects
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