If a company has sufficient excess capacity, which of the following costs are relevant to the decision to make or buy a new product?

Select one:

A. Direct materials

B. Variable overhead

C. Fixed overhead

D. Costs of buying from the outside vendor

E. A, B, and D only

Part 2-

Which of the following are reasons to discontinue an unprofitable business segment?

Select one:

A. Effect of downsizing on employee morale

B. Potential loss of related business

C. Lack of alternative source of part needed in production

D. Fixed cost application to the segment that exceeds the level of the accounting loss

E. None of the above

PART 3-

Which of the following products could be sold as-is or processed further?

Select one:

A. Wheat

B. Flour

C. Bread

D. Cloth

E. All of the above