In 'make or buy' decision, it is profitable to buy from outside only when the supplier's price is below the firm's own ............

CS Executive · Cost and Management Accounting · PYQS · June 2018
In 'make or buy' decision, it is profitable to buy from outside only when the supplier's price is below the firm's own ............
(A) Fixed Cost
(B) Variable Cost
(C) Total Cost
(D) Prime Cost + Fixed cost

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost and Management Accounting

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