Asked by Jamie Williams on Jun 22, 2024
Verified
For small volumes,the cost to manufacture in-house will be lower than outsourcing.
In-House Manufacture
The process of producing goods within a company, as opposed to outsourcing production to external suppliers.
Outsourcing
The strategic use of outside resources to perform activities traditionally handled by internal staff and resources.
- Grasp the financial considerations between in-house manufacturing and outsourcing.
Verified Answer
?R
?hwêta Rajpù?Jun 27, 2024
Final Answer :
False
Explanation :
For small volumes, outsourcing can be more cost-effective as it allows businesses to take advantage of economies of scale and lower labor costs in other countries. In-house manufacturing can become more cost-effective for larger volumes when the fixed costs of owning and maintaining a facility and equipment can be spread out over a larger production run.
Learning Objectives
- Grasp the financial considerations between in-house manufacturing and outsourcing.