Relevant Costs of a Make-Or-Buy Decision Include All of the Following

question 70

Multiple Choice

Relevant costs of a make-or-buy decision include all of the following EXCEPT:

• A)fixed salaries that will not be incurred if the part is outsourced
• B)current direct material costs of the part
• C)special machinery for the part that has no resale value
• D)material-handling costs that can be eliminated

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Definitions:

Legal Rules

Guidelines and principles established through legislations, regulations, or judicial decisions meant to govern behavior and enforceable through legal systems.

Secondary Source

A document or recording that relays information not originally created by the author or speaker, often summarizing or commenting on primary sources.

Compartmentalizing

The practice of separating activities, tasks, or information into distinct sections for improved management and focus.

Discrete Topics

Individual, distinct subjects or areas of discussion that are separate from each other.