23. A purchasing agent has two potential firms to buy materials from for production.

If both firms charge the same

price, the material cost is
A. a committed cost. C. an irrelevant cost
B. a sunk cost D. an opportunity cost
24. Which of the following costs are relevant to a make-or-buy decision?
A. annual depreciation of the equipment
B. original cost of the production equipment
C. the amount that would be received if the production equipment were sold
D. the cost of direct materials purchased last month and used to manufacture the component

25. Which of the following is NOT relevant in a make-or-buy decision about a part the entity uses in some of its
products?
A. The reliability of the outside supplier.
B. The number of units of the part needed each