The costs that should be included in an outsourcing decision are the:
A)Sunk costs.
B)Recurring costs.
C)Relevant costs.
D)All of these ans choices are correct.

Question

Quizplus · Accepted Answer

Only the relevant costs should be considered in an outsourcing decision, as these are the costs that will be affected by the decision and will have an impact on the company's financial performance. Sunk costs are irrelevant, as they are already incurred and cannot be recovered. Recurring costs may be relevant, but only to the extent that they will be eliminated or reduced by outsourcing. Therefore, the correct answer is C.

The Costs That Should Be Included in an Outsourcing Decision