Roseland Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier.Which of the following is irrelevant with respect to this decision?

Question

Quizplus · Accepted Answer

The unavoidable fixed manufacturing costs associated with the manufacture of the component are a relevant factor in the decision of whether to continue manufacturing the component or to buy it from an outside supplier. However, the quality of the component purchased from the outside supplier, the outside supplier's ability to deliver the component on a timely basis, and the alternative uses of the facilities currently being used to manufacture the component are all relevant factors in the decision-making process.

Roseland Company Is Trying to Decide Whether to Continue to Manufacture