What of the Following Would Not Be Relevant in a Make-Or-Buy

question 65

Multiple Choice

What of the following would not be relevant in a make-or-buy decision?

• A) Unavoidable variable costs
• B) Incremental fixed costs
• C) Opportunity costs
• D) Avoidable fixed cost

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Definitions:

Production Function

A mathematical model that describes the relationship between inputs (like labor and capital) and the maximum output that can be produced with those inputs.

Input

Resources used in the production process to create goods or services.

Inputs

Resources such as labor, materials, and capital used in the process of production.

Output

The quantity of goods or services produced by a firm, industry, or economic system.