The costs that should be included in an outsourcing decision are the:
A)Fixed costs.
B)Variable costs.
C)Unavoidable costs.
D)Relevant costs.

Question

Quizplus · Accepted Answer

Relevant costs are the costs that will be affected by the outsourcing decision and should therefore be considered when making the decision. Fixed and variable costs may be relevant or irrelevant depending on whether they will be affected by the outsourcing decision. Unavoidable costs are not necessarily relevant as they cannot be avoided regardless of the outsourcing decision.

The Costs That Should Be Included in an Outsourcing Decision