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:

Quasi-Experimental Design

A research design that resembles an experimental design but lacks random assignment of subjects to treatment and control groups.

Error Variance

Pertains to the variation within experimental data that cannot be attributed to the variables being studied, essentially representing noise in the data.

Quasi-Experimental Designs

Research designs that seek to establish causal relationships between variables but lack the full control or random assignment typical of true experiments.

Selection Criteria

The specific guidelines or requirements used to determine which individuals or cases are included or excluded from a study or analysis.