In a make-or-buy decision, if facilities are and will remain idle when the decision is made to not make a part internally, then the opportunity cost is zero.

Name: In a make-or-buy decision, if facilities are and will remain idle when the decision is made to not make a part internally, then the opportunity cost is zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If facilities remain idle when choosing not to make a part internally, there is no lost opportunity for using those facilities elsewhere, hence the opportunity cost is zero.

In a Make-Or-Buy Decision, If Facilities Are and Will Remain