Which of the following would be considered in a make-or-buy decision?
A) fixed costs that will still be incurred
B) prepaid rent expense for warehousing finished goods and inventories
C) potential rental income from space occupied by the production area
D) unchanged supervisory costs

Question

Quizplus · Accepted Answer

In a make-or-buy decision, opportunity costs such as potential rental income from space occupied by the production area are considered, as they represent potential benefits foregone by choosing to make rather than buy.

Which of the Following Would Be Considered in a Make-Or-Buy