In a make-or-buy decision opportunity costs are
A) added to the make total cost.
B) deducted from the make total cost.
C) added to the buy total cost.
D) ignored.

Name: In a make-or-buy decision opportunity costs are A) added to the make total cost. B) deducted from the make total cost. C) added to the buy total cost. D) ignored.
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Question

Quizplus · Accepted Answer

Opportunity costs are added to the make total cost because they represent the benefits foregone by choosing to make the product instead of buying it.

In a Make-Or-Buy Decision Opportunity Costs Are