Which of the Following Is Correct When Making a Decision

Which of the following is correct when making a decision about outsourcing?

A) If the differential costs of making the product exceed the differential costs of outsourcing, the product should be outsourced.
B) If the unavoidable fixed costs of making the product exceed the unavoidable fixed costs of outsourcing, the product should not be outsourced.
C) If the differential costs of making the product exceed the differential costs of outsourcing, the product should not be outsourced.
D) If there are no additional unavoidable fixed costs, the product should be outsourced.

Correct Answer:

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