Chapter 9

6. Fixed costs are often irrelevant in make-or-buy decisions.

a. True

b. False

7. Outsourcing production help in reducing a companys investment in physical assets and human resources.

a. True

b. False

8. While performing an incremental analysis for outsourcing decision, information such as depreciation is not relevant.

a. True

b. False

9. Outsourcing production or operating activities will help in improving the cash flow by reducing investment in physical assets.

a. True

b. False

10. A special order should be accepted only if it maximizes operating income.

a. True

b. False