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In an insourcing vs. outsourcing decision, the decision process favors the use of total costs rather than unit costs. The reason is that Unit cost

In an insourcing vs. outsourcing decision, the decision process favors the use of total costs rather than unit costs. The reason is that

Unit cost may be calculated based on different volumes.
Irrelevant costs may be included in the unit amounts.
Allocated costs may be included in the unit amounts.
All of the answers are correct.

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