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:

Percentile

A score indicating the percentage of scores in its frequency distribution that are equal to or lower than it.

SAT

A globally recognized college admission test that evaluates a student's readiness for college, focusing on subjects like mathematics and evidence-based reading and writing.

Norm-Referenced Test

A type of test designed to compare and rank test takers in relation to one another.

Measures of Central Tendency

Statistical metrics that describe the center point or typical value of a dataset, including mean, median, and mode.