In a make-or-buy decision, which of the following would not be relevant?
A) the quality of the product
B) the portion of fixed costs that could be eliminated by outsourcing
C) a lease that could be discontinued upon accepting the "buy proposal"
D) property taxes on the plant that will still be necessary even if the product is outsourced

Question

Quizplus · Accepted Answer

In a make-or-buy decision, the focus is on the costs and benefits directly related to the decision at hand. Property taxes on the plant that will still be necessary even if the product is outsourced are considered sunk costs and do not change with the decision to make or buy, making them irrelevant to the decision-making process.

In a Make-Or-Buy Decision, Which of the Following Would Not