Asked by Anshul Suryavanshi on Jun 30, 2024
Verified
Each of the following is a disadvantage of buying rather than making a component of a company's product except that
A) quality control specifications may not be met.
B) the outside supplier could increase prices significantly in the future.
C) profitable product lines may be dropped.
D) the supplier may not deliver on time.
Profitable Product Lines
Specific categories of products that generate more revenue than the costs associated with their production and marketing.
- Identify the advantages and disadvantages of outsourcing parts of production.
Verified Answer
KF
Khadra FarahJul 05, 2024
Final Answer :
C
Explanation :
Profitable product lines being dropped is not a disadvantage of buying components, as that decision would be made internally by the company regardless of whether they buy or make the components. The other three options are all potential disadvantages of buying components.
Learning Objectives
- Identify the advantages and disadvantages of outsourcing parts of production.
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