In a make-or-buy decision, which costs can be considered relevant? Unavoidable variable costs, incremental fixed costs, and sunk costs. Incremental variable costs, unavoidable fixed costs, and opportunity costs. Incremental variable costs, incremental fixed costs, and sunk costs. Incremental variable costs, incremental fixed costs, and opportunity costs.

Question

Mauricio

Business

24 July, 19:23

In a make-or-buy decision, which costs can be considered relevant? Unavoidable variable costs, incremental fixed costs, and sunk costs. Incremental variable costs, unavoidable fixed costs, and opportunity costs. Incremental variable costs, incremental fixed costs, and sunk costs. Incremental variable costs, incremental fixed costs, and opportunity costs.

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Answers (1)

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Dylan Harvey · Answer 1

Incremental variable costs, incremental fixed costs, and opportunity costs

Explanation:

Unavoidable Variable costs can not be considered because they cannot be avoided and will be incurred even if the decision is taken or not.

unavoidable fixed costs can not be considered because they cannot be avoided and will be incurred even if the decision is taken or not.

sunk costs can not be considered because they have already been incurred.