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Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No
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31 votes
31 votes
Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No

User Drvdijk
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1 Answer

15 votes
15 votes

Answer:

B) Yes No

Step-by-step explanation:

Materials cost are incremental and relevant whereas Depreciation on equipment with no resale value are irrelevant.

User RobertKenny
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