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Is this correct? A large plant produces a complex product. The plant is currently producing a component that could be purchased from a supplier. The
Is this correct?
A large plant produces a complex product. The plant is currently producing a component that could be purchased from a supplier. The company reports the following costs assigned to the component: $15 direct material costs per unit 25 direct labor costs per unit (workers laid off with purchase from supplier) 10 electric costs per unit (for running machinery) In the make/buy decision, which of the following costs is a relevant cost? Select one: a. direct materials b. direct labor c. direct materials and direct labor d. direct materials and electric e. direct materials, direct labor, and electricStep by Step Solution
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