Gnome Company is deciding whether to continue to manufacture

Gnome Company is deciding whether to continue to manufacture a component or to buy the component from a supplie. Which of the following is relevant to this decision? Select one: O A. the cost of the equipment that is currently being used to manufacture the component B. fixed costs that do not differ between the alternatives C. the insurance on the manufacturing facility that will continue regardless of the decision D. the potential uses of the facilities that are currently used to manufacture the component E. none of the above

Solution

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D the potential uses of the facilities that are currenty used to manufacture the component...since the potential use is the oppurtunity cost...