What of the following would not be relevant in a make-or-buy decision?
A) Unavoidable variable costs
B) Incremental fixed costs
C) Opportunity costs
D) Avoidable fixed cost

Question

Quizplus · Accepted Answer

Unavoidable variable costs would not be relevant in a make-or-buy decision because they are costs that cannot be avoided regardless of whether the product or service is made in-house or purchased from an external supplier. In a make-or-buy decision, the focus is on comparing the costs and benefits of producing the product or service in-house versus outsourcing it to an external supplier. The relevant costs to be considered are incremental fixed costs, opportunity costs, and avoidable fixed costs.

What of the Following Would Not Be Relevant in a Make-Or-Buy