Fixed overhead costs that will continue regardless of a make-or-buy decision are ________ to the make-or-buy decision.
A)relevant
B)irrelevant
C)avoidable
D)incremental

Question

Quizplus · Accepted Answer

Fixed overhead costs are not affected by the make-or-buy decision and will continue regardless of the decision taken. Hence, they are irrelevant to the make-or-buy decision.

Fixed Overhead Costs That Will Continue Regardless of a Make-Or-Buy