Which of the following statements is true when a company is considering whether to make or buy a component of a product that it currently manufactures?

a. If the current fixed overhead is avoidable when outsourcing, the product should be outsourced. 

b. If the cost of outsourcing is greater than the direct materials cost of making internally, the product should continue to be made internally .

c. If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally. 

d. If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should be outsourced.

Answer rating: 100% (QA)

Option D is the answer The product should be ... View the full answer