Decision Making and Relevant Costs at Amazon

Requirements:

• Use relevant costing techniques to decide whether Amazon should continue manufacturing a product internally or outsource it to a third-party supplier.
• Analyze the relevant costs and benefits of each option, including production costs, quality control, and supplier reliability.
• Evaluate qualitative factors such as brand reputation and customer satisfaction in the decision-making process for Amazon.
• Recommend the most cost-effective option based on relevant costing analysis for Amazon's product manufacturing.