Be cautious of ________ expressed on a per-unit basis when weighing make-or-buy decisions.The total value (instead of the per unit value)is relevant to the decision.
A)variable costs
B)fixed costs
C)opportunity costs
D)relevant costs

Question

Quizplus · Accepted Answer

Fixed costs are not affected by the decision to make or buy on a per-unit basis, as they will be incurred regardless of the decision. Thus, focusing on total value rather than per-unit value is more relevant for these costs.

Be Cautious of ________ Expressed on a Per-Unit Basis When