The general rule for make or buy decisions is to choose the option with the lowest relevant cost.

Name: The general rule for make or buy decisions is to choose the option with the lowest relevant cost.
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Question

Quizplus · Accepted Answer

The make or buy decision is primarily based on comparing the relevant costs (including all variable costs and any additional fixed costs) of making the product in-house versus the cost of buying it from an external supplier, choosing the option that minimizes total costs.

The General Rule for Make or Buy Decisions Is to Choose