Multiple Choice
Alex International needs 20,000 units of a certain part to use in its production cycle.If Alex buys the part from Nicole Company instead of making it,Alex could not use the released facilities in another activity;thus,all of the fixed overhead applied will continue regardless of what decision is made.Accounting records provide the following data: Cost to Alex to make the part: What should Alex's decision be,and what is the total cost savings that would result?
A) Buy,$180,000
B) Buy,$20,000
C) Make,$180,000
D) Make,$20,000
Correct Answer:

Verified
Correct Answer:
Verified
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