In a Make-Or-Buy Decision, Which Costs Can Be Considered Relevant

question 77

Multiple Choice

In a make-or-buy decision, which costs can be considered relevant?

• A) Unavoidable variable costs, incremental fixed costs, and sunk costs
• B) Incremental variable costs, unavoidable fixed costs, and opportunity costs
• C) Incremental variable costs, incremental fixed costs, and sunk costs
• D) Incremental variable costs, incremental fixed costs, and opportunity costs

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Definitions:

Investigations

Systematic inquiries or examinations into something, with the aim to discover or establish facts or truths.

Informal Rule Making

A type of rule making in which an agency publishes a proposed rule in the Federal Register, considers public comments, and then publishes the final rule. Also called notice-and-comment rule making.

Administrative Agencies

Government bodies responsible for the oversight and administration of specific functions and laws, including regulation and enforcement.

Jury Trials

Legal proceedings where a group of citizens is selected to hear the evidence and make a decision in a court case.