Which of the Following Is a Relevant Cost to Be

question 84

Multiple Choice

Which of the following is a relevant cost to be included in a make-or-buy decision?

• A) fixed salaries that will not be incurred if the part is outsourced
• B) pension costs to the current employees
• C) increase in the cost of repairing of all equipment of the firm
• D) material-handling costs that cannot be eliminated even if the product is outsourced

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Definitions:

Assumption

A statement accepted as true without proof, often forming the basis of an argument or hypothesis.

MT

Modus Tollens, a form of logical argument or a rule of inference allowing one to deduce a conclusion from a hypothetical proposition and its denial.

Add

In context, add might not be a specific key term without further context; it typically means to combine or sum quantities in mathematics.

Assumption

Something presumed to be true or certain to occur, even without evidence.