Sort decision costs from decision noise

Sort each item in the make-or-buy decision for a component currently made in-house. Relevant include Sunk exclude Unavoidable exclude Opportunity cost include Direct material avoided if the part is bought Supplier purchase price per unit New receiving inspection labor required for bought parts Tooling cost paid last year and not recoverable Completed engineering study already billed to the project Shared plant rent that stays under both options Corporate HR allocation reassigned to other lines if outsourced Contribution from a new job that could use the freed machine time

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