In a make-or-buy decision,if plant facilities will remain idle when the decision is made to outsource a part,then the opportunity cost of the plant facilities is zero.Assume there are no alternative uses of the plant facilities available.

Question

Quizplus · Accepted Answer

If there are no alternative uses of the plant facilities available, then the plant facilities will remain idle regardless of the decision to make or buy the part. Therefore, the opportunity cost of the plant facilities in this scenario is zero, making statement A true.

In a Make-Or-Buy Decision,if Plant Facilities Will Remain Idle When