Relevant costs are those costs that differ among related choices. Fixed costs that would be avoidable if a decision is made to buy are relevant to a make-or-buy decision.
Unavoidable costs will continue regardless of the decision to make-or-buy, so therefore, these costs are not relevant to the decision.
Property taxes are fixed costs, so therefore, not relevant to the decision.
Factory depreciation is a fixed cost and is not relevant, unless it is avoidable.
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