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Make or Buy decision- Help needed

Discuss Make or Buy decision- Help needed within the Management accounting and Cost accounting forums, part of the Upload / Download Banking and Insurance Projects and Notes category; Could you help me determine if depreciation is relevant cost or not in this case.... It is said that: B]!!!! ...

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Make or Buy decision- Help needed
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Isidan Isidan
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Isidan
Student of Bachelor of Engineering at xlgkxkgc
Lamentin, Guadeloupe
 
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Join Date: Oct 2010
Location: Lamentin, Guadeloupe
Question Make or Buy decision- Help needed - October 27th, 2010

Could you help me determine if depreciation is relevant cost or not in this case....


It is said that:

B]!!!! If the offer is accepted (if we buy from external supplier), the equipment
would be scrapped (it is old and has no market value) and the lab facility would be closed. !!!![/B]

My question will be: Do we have to use depreciation as relevant cost if we want to buy (summarizing with other costs) or we do not use it at all, because in this case it's irrelevant?
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Last edited by Isidan; October 29th, 2010 at 12:29 AM..
   
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