Which of the following would NOT be considered in a make-or-buy decision?
A)Potential rental income from space occupied by the production area
B)Unchanged supervisory costs
C)Variable costs of production
D)Fixed costs that will no longer be incurred

Question

Quizplus · Accepted Answer

Unchanged supervisory costs would not be considered in a make-or-buy decision because these costs remain constant regardless of the decision to make in-house or to purchase from an external supplier.

Which of the Following Would NOT Be Considered in a Make-Or-Buy