Question: A company is deciding whether to continue making a product or to buy the product from an outside vendor instead. ( Assume that if the
A company is deciding whether to continue making a product or to buy the product from an outside vendor instead. Assume that if the decision is to buy the product from an outside vendor, the plant would remain idle.
Which of the following statements is NOT true?
Indirect manufacturing costs are relevant to the make or buy decision.
Direct materials costs are relevant to the make or buy decision.
Factory rental costs paid under an existing rental contract are relevant to the make or buy decision.
Variable production costs are relevant to the make or buy decision.
I DON'T KNOWYET
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