Economics · Cost Accounting
In a relevant costing framework for a 'make or buy' decision, which of the following factors is generally NOT relevant?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Variable cost of making the product in-house versus the external acquisition price
- 2Opportunity cost of utilizing the released capacity for alternative activities
- 3General allocated fixed production costs that will continue regardless of the decision✓
- 4Reliability of supply and quality of bought-in products
Correct answer
General allocated fixed production costs that will continue regardless of the decision
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