The costs that should be included in an outsourcing decision are the
A)sunk costs.
B)recurring costs.
C)relevant costs.
D)fixed costs.

Question

Quizplus · Accepted Answer

Relevant costs should be considered in an outsourcing decision. These are costs that will change as a result of the outsourcing decision, such as labor costs, material costs, and overhead costs. Sunk costs and fixed costs should not be considered as they cannot be recovered or changed, and recurring costs may not be affected by the outsourcing decision.

The Costs That Should Be Included in an Outsourcing Decision