Which of the Following Costs Is Irrelevant to a Make-Or-Buy

question 11

Multiple Choice

Which of the following costs is irrelevant to a make-or-buy decision?

• A)$10,000 of direct labour used to manufacture the parts
• B)$30,000 of depreciation on the plant used to manufacture the parts
• C)the supervisor's salary of $25,000 that will be avoided if the part is purchased from an outside supplier
• D)$15,000 in rent from leasing the production space to another company if the part is purchased from an outside supplier

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