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In a make or buy decision you compare the cost of buying the units out right or making them yourself

Accounting

In a make or buy decision you compare the cost of buying the units out right or making them yourself. Which of the following would be an example of a cost(s) you could not avoid?

   

Direct Labor

   

Depreciation of the machine that makes the product.

   

Direct Materials

   

Variable Overhead

Option 1

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