Relevant costs of a make-or-buy decision include all of the following EXCEPT:
A)fixed salaries that will not be incurred if the part is outsourced
B)current direct material costs of the part
C)special machinery for the part that has no resale value
D)material-handling costs that can be eliminated

Question

Quizplus · Accepted Answer

Special machinery for the part that has no resale value is a sunk cost and does not affect the make-or-buy decision.

Relevant Costs of a Make-Or-Buy Decision Include All of the Following