The costs that should be included in an outsourcing decision are
A)fixed costs.
B)nonrecurring costs.
C)sunk costs.
D)differential costs.

Question

Quizplus · Accepted Answer

The costs that should be included in an outsourcing decision are differential costs, which are the additional costs or savings that would result from outsourcing compared to performing the activity in-house. The other options listed (fixed costs, nonrecurring costs, and sunk costs) would not provide a complete picture of the financial impact of outsourcing.

The Costs That Should Be Included in an Outsourcing Decision