Multiple Choice
In deciding whether to manufacture a part or buy it from an outside vendor,a cost that is irrelevant to the short-run decision is:
A) Direct labor.
B) Variable overhead.
C) Fixed overhead that will be avoided if the part is bought from an outside vendor.
D) Fixed overhead that will continue even if the part is bought from an outside vendor.
Correct Answer:

Verified
Correct Answer:
Verified
Q53: A company owns equipment that is used
Q54: The Sand Cruiser is a takeout food
Q55: The Tee Box is a golf shop
Q56: The following unit cost information pertained to
Q59: Fixed costs will often be irrelevant because
Q60: One of the behavioral problems with relevant
Q61: The Crown Company must decide whether to
Q62: The Car Lot is a New York
Q63: To make a special order decision,managers need
Q129: Variable costs will generally be relevant for