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 are the costs that differ between the two options being considered, and these costs should be considered when making an outsourcing decision. Fixed costs, nonrecurring costs, and sunk costs are all important to consider, but they are not necessarily relevant to the decision at hand.

The Costs That Should Be Included in an Outsourcing Decision