Why Is the "Make-Buy" Decision and Deciding Whether or Not

question 13

Essay

Why is the "make-buy" decision and deciding whether or not to outsource software development an important part of the software planning process?

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Definitions:

Break-Even Point

The level of production or sales at which total revenues equal total costs, resulting in no profit or loss.

R-Squared

A statistical measure representing the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Mixed Cost

A cost that contains both variable and fixed cost elements.

Account Analysis

A method used in accounting to evaluate and break down the detailed costs of an account into its various components.