相关成本和管理略 relevant costing.pptVIP

The Make or Buy decision involves the question of whether it is more economical to produce a component internally or purchase it from an outside supplier. We will again concentrate on incremental cost for this decision. FasTrac is now making part number 417 which is a component part in its final product. The unit cost of the part includes direct material, direct labor, and factory overhead as shown on your screen. An outside supplier offers to make part number 417, and sell it to FasTrac for $1.20 per unit. We know that $1.20 is less that FasTrac’s $1.45 unit cost. Should FasTrac stop mak