Decision of Making or Buying: When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or buy decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier. In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis The financial advantage or (Disadvantage) of buying 80,000 units of Alpha form supplier instead of making

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What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

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Chapter 12, Problem 9F15

To determine

Decision of Making or Buying:

When a company takes decision, whether to manufacture a component internally or buy from outside it is called make or buy decision. While taking the decision, the variable costs of manufacturing the product is compared with the purchase price of the product when bought from the outside supplier.

In relevant costing, the decision to make or buy a product component depends upon the analysis of costs. Avoidable fixed costs and opportunity costs are also considered in the analysis

The financial advantage or (Disadvantage) of buying 80,000 units of Alpha form supplier instead of making

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What percentage of RBC’s total assets is held in investments (at October 31, 2020 and 2019)? refer to the 2020 financial statements and accompanying notes of Royal Bank of Canada (RBC). Note that RBC also holds a significant loan portfolio. What is the business reason for holding loans versus securities? Comment on how the investments are classified and presented on the balance sheet. What percentage of total interest income comes from securities (2020 and 2019)? Are there any other lines on the income statement or in OCI) relating to the securities? What percentage of net income (include any relevant OCI items) relates to securities (2020 versus 2019)? Calculate an approximate return on the investments in securities.

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