1.

In deciding whether to manufacture a part or buy it from an outside vendor, which of the following represents a cost that is not relevant to the short-run decision?

	A.	variable overhead.
	B.	fixed overhead that will continue even if the part is bought from an outside vendor.
	C.	direct labor.
	D.	fixed overhead that will be avoided if the part is bought from an outside vendor.

2. In considering a special order that will enable a company to make use of presently idle capacity, which of the following costs would be irrelevant?

	A.	Direct Labor
	B.	Variable Overhead
	C.	Direct Materials
	D.	Depreciation based on passage of time