What managers should while considering this decision


Problem: Toughby Company is considering buying an input to its main product from an outside supplier, rather than producing the input itself. If Toughby Company purchases the part elsewhere, it can use the capacity currently being used to produce the input to generate additional profit of $22,000. When considering this decision, Toughby Company. managers should: Consider the $22,000 as a cost of making the input Include the $22,000 as both a cost of making the input and a benefit of purchasing the input from the outside supplier Consider the $22,000 as a cost of purchasing the input from the outside supplier Ignore the $22,000

 

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Accounting Basics: What managers should while considering this decision
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