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Gnome Company Is Deciding Whether to Continue to Manufacture a Component

Question 149

Multiple Choice

Gnome Company is deciding whether to continue to manufacture a 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 that will continue regardless of the decision
C) fixed costs that do not differ between the alternatives
D) the cost of the equipment that is currently being used to manufacture the component

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