Which of the following is a relevant cost to be included in a make-or-buy decision?
A) fixed salaries that will not be incurred if the part is outsourced
B) pension costs to the current employees
C) increase in the cost of repairing of all equipment of the firm
D) material-handling costs that cannot be eliminated even if the product is outsourced

Question

Quizplus · Accepted Answer

Fixed salaries that will not be incurred if the part is outsourced are relevant costs because they represent potential savings if the decision is made to buy the part instead of making it in-house.

Which of the Following Is a Relevant Cost to Be