Harrison Company Determines That an Opportunity Cost of an Alternate

Multiple Choice

Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision.Which statement is true of the opportunity cost?

A) should be added to the "buy" costs
B) should be subtracted from the "make" costs
C) should be added to the "make" costs
D) should be ignored if it does not involve a cash outlay