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Steven Company's Records Reveal the Following: Variable Costs

Question 8

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Steven Company's records reveal the following: Steven Company's records reveal the following: Variable costs: The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division A wants to transfer the parts to Division B for $81 each.Division B can buy the parts for $75 per unit from an outside supplier.Division A has no excess capacity.The manager of Division B should ________. A) buy the parts from the outside supplier for $75 each B) buy the parts from Division A at $81 each C) buy the parts from an outside supplier for $76 each D) none of the above Steven Company's records reveal the following: Variable costs: The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division A wants to transfer the parts to Division B for $81 each.Division B can buy the parts for $75 per unit from an outside supplier.Division A has no excess capacity.The manager of Division B should ________. A) buy the parts from the outside supplier for $75 each B) buy the parts from Division A at $81 each C) buy the parts from an outside supplier for $76 each D) none of the above Variable costs:
Steven Company's records reveal the following: Variable costs: The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division A wants to transfer the parts to Division B for $81 each.Division B can buy the parts for $75 per unit from an outside supplier.Division A has no excess capacity.The manager of Division B should ________. A) buy the parts from the outside supplier for $75 each B) buy the parts from Division A at $81 each C) buy the parts from an outside supplier for $76 each D) none of the above The variable costs of Division B will be incurred whether it buys from Division A or from an outside supplier.Division A wants to transfer the parts to Division B for $81 each.Division B can buy the parts for $75 per unit from an outside supplier.Division A has no excess capacity.The manager of Division B should ________.


A) buy the parts from the outside supplier for $75 each
B) buy the parts from Division A at $81 each
C) buy the parts from an outside supplier for $76 each
D) none of the above

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