Gnome 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 RELEVANT to this decision?
A) The insurance on the manufacturing facility which will continue regardless of the decision
B) The cost of the equipment that is currently being used to manufacture the component
C) Allocated corporate fixed costs which would have to be allocated to other products if the component is no longer manufactured
D) The potential uses of the facilities that are currently used to manufacture the component
Correct Answer:
Verified
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