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    Make or Buy / Fixed Costs

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    Please help me answer this question.

    When are fixed costs relevant in a make-or-buy decision?
    A. Fixed costs are never relevant to the decision.
    B. Fixed costs are relevant when they differ among alternatives.
    C. Fixed costs are always relevant to the decision.
    D. Fixed costs are relevant when they exceed variable costs.

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    https://brainmass.com/business/accounting/make-or-buy-fixed-costs-517448

    Solution Preview

    B. Fixed costs are relevant when they differ among alternatives.

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    This solution explains an answer related to fixed costs.

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