A restaurant is facing a decision about whether it should bake its own dinner rolls or whether it should continue to purchase the dinner rolls from a local bakery. Which of the following costs would be relevant to its decision?
A) The salary of the restaurant manager
B) The purchase price of the dinner rolls purchased from the local bakery
C) The price the restaurant sells the dinner rolls for
D) The original purchase price of the current machinery

Question

Quizplus · Accepted Answer

The cost of purchasing dinner rolls from a local bakery is directly related to the decision of whether to bake their own dinner rolls or purchase them. The remaining choices do not have a direct impact on this specific decision.

A Restaurant Is Facing a Decision About Whether It Should