Which of the following should NOT be a consideration when deciding whether to make or buy a part?
A) differential fixed costs
B) opportunity costs
C) sunk costs
D) capacity costs

Question

Quizplus · Accepted Answer

Sunk costs should not be a consideration when deciding whether to make or buy a part as they are costs that have already been incurred and cannot be recovered regardless of the decision made. Differential fixed costs, opportunity costs, and capacity costs should be taken into account when making the decision.

Which of the Following Should NOT Be a Consideration When