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

Question

Quizplus · Accepted Answer

Relevant costs should be included in an outsourcing decision as they are the costs that directly affect the decision and can be attributed to the outsourcing activity. Fixed costs, nonrecurring costs, and sunk costs may have already been incurred and are not relevant to the outsourcing decision.

The Costs That Should Be Included in an Outsourcing Decision