Which of the Following Costs Are Not Considered in a Differential

question 77

Multiple Choice

Which of the following costs are not considered in a differential analysis for a make-or-buy decision?

• A)Indirect materials and indirect labor if the item is purchased
• B)Direct materials and direct labor if the item is manufactured internally
• C)Variable overhead if the item is purchased
• D)Fixed overhead that will continue if the item is purchased
• E)Fixed overhead that can be avoided if the item is purchased