Which of the following items does not have to be considered when evaluating a make-or-buy decision?...
Which of the following items does not have to be considered when evaluating a make-or-buy decision?
The reliability of the supplier's delivery schedule.
Quality of the supplier's product.
Net book value (NBV) of the production equipment used to make the item in question.
Contribution margin generated by an alternative use of the production equipment.
Financial stability of the supplier.
Homework Answers
| Net book value (NBV) of the production equipment used to make the item in question does not have to be considered when evaluating a make-or-buy decision. |
| Net book value (NBV) of the production equipment used is a Sunk cost or past cost and irrelevant is make-or-buy decision. |
| Reliability of the supplier's delivery schedule,Quality of the supplier's product, Opportunity cost and Financial stability of the supplier are all relevant in decision. |
| Option C is correct |
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Which of the following items does not have to
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