A Company's Approach to a Make-Or-Buy Decision

Multiple Choice

A company's approach to a make-or-buy decision:

A) Depends on whether the company is operating at or below the breakeven point.
B) Depends on whether the company is operating at or below normal volume.
C) Involves an analysis of avoidable costs.
D) Should utilize absorption (i.e., full) costing for inventory purposes.
E) Should consider an allocation of corporate headquarter expenses to the item in question.