Multiple Choice
A company is considering whether to continue to make a product itself, or whether to buy it from another company. If it stops making the product, it will sell its existing factory and fire the workers who now make the product. Which of the following is usually not a "relevant" factor in making this decision?
A) The price per unit it would pay the other company
B) The severance costs it will have to pay the employees when it fires them
C) The original cost of the factory
D) The cash that will be received when the old factory is sold
Correct Answer:
Verified
Correct Answer:
Verified
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