When deciding whether to make or buy a component part, the most relevant consideration is often: Question options: a) The sunk cost of equipment used to manufacture the part. b) The unavoidable fixed manufacturing costs. c) The average total cost of making the part. d) The variable manufacturing costs per unit.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1CMA
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When deciding whether to make or buy a component part, the most relevant consideration is often:

Question options:

a) The sunk cost of equipment used to manufacture the part.

b) The unavoidable fixed manufacturing costs.

c) The average total cost of making the part.

d) The variable manufacturing costs per unit.

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