Question

Gnome Company is deciding whether to continue to manufacture a component or to buy the component from a supplier. Which of the following is relevant to this​ decision?

A. the insurance on the manufacturing facility that will continue regardless of the decision
B. the potential uses of the facilities that are currently used to manufacture the component
C. fixed costs that do not differ between the alternatives
D. the cost of the equipment that is currently being used to manufacture the component

Answer 1

B

Step-by-step explanation:

Answer is B The potential uses of the facilities that are currently used to manufacture the component

because the potential uses of the facilities that are currently used to manufacture the component is very important as it is to be taken into account whether this potential will be used for any other purpose or not as it may be important in generating extra profit from its any other use which will be relevant in deciding whether to make or buy the product

All other three option A,and D is talking about the fixed cost that will be incurred regardless of the decision of making or buying the product