In a Make-Or-Buy Decision, Relevant Costs Include

question 180

Multiple Choice

In a make-or-buy decision, relevant costs include:

• A)unavoidable fixed costs
• B)avoidable fixed costs
• C)fixed factory overhead costs applied to products
• D)fixed selling and administrative expenses

---

Definitions:

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs for workers who lose their jobs.

FIT Payable

Federal Income Tax Payable, a liability account that represents the amount of federal taxes a company or individual owes to the tax authorities.

FUTA Payable

The liability account for the federal unemployment tax that employers must pay on behalf of their employees.

SUTA Payable

The liability account used to record the amounts owed by an employer for state unemployment taxes.