Question

true or false

6. In many cases, the costs sometimes used in making a make-buy decision may not be relevant to the specific issue.  

7. The recent outsourcing increases in the logistical sector can be attributed to increased government and non-government regulation in the transportation industry.
8. Procurements increased participation of services may be explained by the high dollars spent on services and the opportunities to reduce costs.

9. According to the text, a basic description of a requirement for an item or service that leaves room for supplier enhancements and contributions is called a specification.

10. Capital equipment procurement is different from other types of buys because calculation of final cost includes estimates over the lifespan of the capital items.

Answer 1

6. Cost is a crucial factor to decide make or buy. However in specific issues such as when a specific technology or customization is required, other factors take place of the cost's importance.

Therefore the statement is TRUE

7. Outsourcing in Logistics means we hire transport companies for the commutation of our products and raw material. Out sources should be accountable to the buyers/sellers/Govt. agencies/other insurance agencies. In order to take care of their compliances and accountability there are increase in regulations over time.

Therefore the statement is TRUE

9. Specification does not involve giving room to the supplier to make enhancements and contributions in the making of items or provision of service. As the name suggests it is More Specific and is relevant to the customer/buyer requirements.

Therefore the statement provided is FALSE

10. The cost of acquisition of Capital Equipments includes the purchase price, cost of transportation, attachment costs & significant modifications. During its estimated lifespan Depreciation is charged to these assets of the entity.

Therefore the statement provided is FALSE