Which of the following are relevant in a make or buy decision?
$\text {\underline{ Prime costs} }$ $\text {\underline{ Sunk costs} }$ $\text {\underline{ Incremental costs} }$

A)yes yes yes
B)yes no yes
C)yes no no
D)no no yes

Question

Which of the following are relevant in a make or buy decision?
$\text {\underline{ Prime costs} }$        $\text {\underline{ Sunk costs} }$              $\text {\underline{ Incremental costs} }$

A)yes yes yes
B)yes no yes
C)yes no no
D)no no yes

Quizplus · Accepted Answer

Prime costs and incremental costs are relevant in a make or buy decision because they directly impact the cost of production or purchasing. Sunk costs are not relevant because they have already been incurred and cannot be recovered or changed by the decision.

Which of the Following Are Relevant in a Make or Buy