In a make-or-buy decision, which costs can be considered relevant? Group of answer choices Unavoidable variable...

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Question

In a make-or-buy decision, which costs can be considered relevant? Group of answer choices Unavoidable variable...

In a make-or-buy decision, which costs can be considered relevant?

Group of answer choices

Unavoidable variable costs, incremental fixed costs, and sunk costs

Incremental variable costs, unavoidable fixed costs, and opportunity costs

Incremental variable costs, incremental fixed costs, and sunk costs

Incremental variable costs, incremental fixed costs, and opportunity costs

business accounting

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Answer 1

Answer #1

Answer

Incremental variable costs, incremental fixed costs, and opportunity costs

Explanation:

Unavoidable Variable costs can not be considered because they cannot be avoided and will be incurred even if the decision is taken or not.

unavoidable fixed costs can not be considered because they cannot be avoided and will be incurred even if the decision is taken or not.

sunk costs can not be considered because they have already been incurred.

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Answer 2

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