In a Make or Buy Decision,the Opportunity Cost of Capacity

question 70

Multiple Choice

In a make or buy decision,the opportunity cost of capacity could

• A)be considered to decrease the price of units purchased from suppliers.
• B)be considered to decrease the cost of units manufactured by the company.
• C)be considered to increase the price of units purchased from suppliers.
• D)not be considered since opportunity costs are not part of the accounting records.

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Definitions:

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