Which of the Following Costs Are Not Considered in a Differential

Multiple Choice

Which of the following costs are not considered in a differential analysis for a make-or-buy decision?

A) Indirect materials and indirect labor if the item is purchased.
B) Direct materials and direct labor if the item is manufactured internally.
C) Variable overhead if the item is purchased.
D) Fixed overhead that will continue if the item is purchaseD.
A cost that does notchange is not included in the analysis