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The Manager of Hampton,Inc

Question 115

Multiple Choice

The manager of Hampton,Inc.is trying to decide whether to make or buy a component of the product it sells.Which of the following costs and benefits is not relevant to the decision?


A) Direct labor cost involved in making the component
B) The purchase price of the component if it is bought
C) Variable manufacturing overhead involved in making the component
D) The selling price of the product

Correct Answer:

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