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In deciding whether to produce a part internally or buy it from an external source,...

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Question

Accounting

In deciding whether to produce a part internally or buy it from an external source, a cost that is irrelevant is:

i. direct materials

ii. avoidable costs

iii. cost that will continue irrespective of decision made

iv. common or allocated fixed costs

Multiple Choice

i only

ii and iii

iii only

iii and iv

i, ii and iii

Answer & Explanation Solved by verified expert
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