Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision. Which statement is true of the opportunity cost? should be ignored if it does not involve a cash outlay should be added to the "buy" costs should be subtracted from the "make" costs should be added to the "make" costs
Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision. Which statement is true of the opportunity cost? should be ignored if it does not involve a cash outlay should be added to the "buy" costs should be subtracted from the "make" costs should be added to the "make" costs
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1MC: ______ are the costs associated with not choosing the other alternative. A. Sunk costs B....
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Harrison Company determines that an opportunity cost of an alternate course of action is relevant to a make-or-buy decision. Which statement is true of the opportunity cost?
should be ignored if it does not involve a cash outlay
should be added to the "buy" costs
should be subtracted from the "make" costs
should be added to the "make" costs
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