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21. Absorption cost per unit is the best product cost to use for one-time-only special order decisions. True False

22. Sometimes qualitative factors are the most important factors in make-or-buy decisions.  True False

23. If a company is deciding whether to outsource a part, the reliability of the supplier is an important factor to consider.  True False

24. Outsourcing is risk free to the manufacturer because the supplier now has the responsibility of producing the part. True False

25. When a firm maximizes profits it will simultaneously minimize opportunity costs.  True False

26. In a make-or-buy decision when there are alternative uses for capacity, the opportunity cost of idle capacity is relevant.  True False

27. When opportunity costs exist, they are always relevant.  True False

28. When capacity is constrained, relevant costs equal incremental costs plus opportunity costs.  True False

29. If the $17,000 spent to purchase inventory could be invested and earn interest of $1,000, then the opportunity cost of holding inventory is $17,000. True False

30. The choice is not really whether to make or buy, but rather how to best utilize available production capacity.  True False