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The amount of the bribe from the potential new supplier
The redundancy payments to supervisor of the product in question
The saved labour costs of the production staff re-directed to other work
The materials no longer bought to manufacture the productWhy would the first statement would not be included in the consideration in a make or buy decision whilst it is an incremental cost
Why would the last two statements not be included in the consideration in a make or buy decision whilst they are incremental or extra savings
Why would the second statement be included in the consideration in a make or buy decision whilst it is not an incremental costAccepting bribes is unethical and illegal. A qualified accountant would not (and would not be allowed) to even consider the possibility,
The redundancy payment is an incremental cost because it will only be paid if the company stops making the product.
If labour is redirected to other work then they are still be paid and there is no change in the cost.
The materials would normally be relevant and I can only assume that there was more information in the question that you have typed. If it is a past exam question or a question in the BPP Revision Kit, then tell me which question and I will check.
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