Asked by Layton Bicanovsky on Jun 27, 2024

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All of the following should be considered in a make-or-buy decision except

A) cost savings
B) quality issues with the supplier
C) future growth in the plant and other production opportunities
D) whether the supplier will make a profit that would no longer belong to the business

Make-Or-Buy Decision

A strategic decision-making process used by companies to determine whether it is more cost-effective to produce goods internally or buy them from an external supplier.

Cost Savings

Reductions in expenses achieved through efficiency improvements, budget adjustments, or other financial strategies.

Production Opportunities

Situations or contexts in which a company has the potential to increase its output, efficiency, or product offerings.

  • Comprehend the significance of variable and fixed costs in making decisions.
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AF
alicia floresJun 27, 2024
Final Answer :
D
Explanation :
Whether the supplier will make a profit that would no longer belong to the business is not a relevant factor to consider when making a make-or-buy decision. The focus is typically on factors such as cost savings, quality issues with the supplier, and future growth opportunities.