Relevant cost for make-or-buy decision excludes:

Relevant cost for make-or-buy decision excludes:

Relevant cost for make-or-buy decision excludes:

A. Avoidable variable production cost

B. Extra incremental fixed cost if in-house produce

C. Sunk factory equipment purchase cost in prior years

D. Opportunity benefit from releasing factory space

Answer: C

Rationale: Historical sunk cost cannot change regardless of make or outsource choice.