Question
Which of the following would be a qualitative issue in deciding whether to make orbuy a part used in production? A. The company will lose
Which of the following would be a qualitative issue in deciding whether to make orbuy a part used in production?
A. | The company will lose control over the quality of the part. | |
B. | The company may lose control over the available quantity of part. | |
C. | People may stop purchasing the companys product. | |
D. | All of the above are qualitative issues. |
A company is considering purchasing a part from an outside supplier rather than makingthe part. Which of the following costs is not relevant to the decision?
A. | The cost of direct materials required to make the part. | |
B. | The price charged by the outside supplier. | |
C. | The depreciation cost of the companys factory. | |
D. | The cost of the variable overhead required to make the part. |
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