Gnome Company is trying to decide whether to continue to manufacture a particular component or to buy the component from a supplier. Which of the following is relevant to this decision?
A) the potential uses of the facilities that are currently used to manufacture the component
B) the insurance on the manufacturing facility which will continue regardless of the decision
C) allocated corporate fixed costs which would have to be allocated to other products if the component is no longer manufactured
D) the cost of the equipment that is currently being used to manufacture the component
Correct Answer:
Verified
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