Which one of the following does not affect a make or buy decision?
A)Variable manufacturing costs
B)Opportunity cost
C)Incremental revenue
D)Direct labour

Question

Quizplus · Accepted Answer

Incremental revenue is not a relevant factor in the make or buy decision as it does not impact the costs associated with producing the product. The other factors listed (variable manufacturing costs, opportunity cost, and direct labor) all directly impact the financial implications of whether to make or buy a product.

Which One of the Following Does Not Affect a Make