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In Deciding Whether to Manufacture a Part or Buy It

Question 1

Multiple Choice

In deciding whether to manufacture a part or buy it from an outside supplier, which of the following is an irrelevant cost?


A) Direct labour
B) Variable overhead
C) Fixed overhead that will be avoided if the part is purchased from an outside supplier
D) Fixed overhead that will continue even if the part is purchased from an outside supplier

Correct Answer:

verifed

Verified

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