Question
Which of the following would not be relevant in a make-or-buy decision? Direct materials Factory depreciation Direct labor Variable overhead I'm so confused! Direct Materials,
Which of the following would not be relevant in a make-or-buy decision?
- Direct materials
- Factory depreciation
- Direct labor
- Variable overhead
I'm so confused! Direct Materials, Labor, and Variable Overhead are all variable costs. Variable costs are relevant in make-or-buy decisions. Depreciation is a fixed cost also used in a book example make-or-buy decision. Is Factory Depreciation the correct answer?
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
