In a make or buy decision:
A)Only variable costs are relevant.
B)Fixed costs that can be avoided in the future are relevant.
C)Fixed costs that will continue regardless of the decision are relevant.
D)Only opportunity costs are relevant.

Question

Quizplus · Accepted Answer

In a make or buy decision, fixed costs that can be avoided in the future are relevant because they represent potential savings if the company decides to buy instead of making the product.

In a Make or Buy Decision