If a company has sufficient excess capacity which of the fol

If a company has sufficient excess capacity, which of the following costs are relevant to the decision to make or buy a new product?

A.Direct materials

C.Costs of buying from the outside vendor

D.All of the above except fixed overhead

A.Direct materials

Solution

All of the above except fixed overhead is relevant to the decision to make or buy a new product Option D is correct
If a company has sufficient excess capacity, which of the following costs are relevant to the decision to make or buy a new product? A.Direct materials C.Costs

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