Qualitative Factors That Should Be Considered When Evaluating a Make-Or-Buy

question 94

Multiple Choice

Qualitative factors that should be considered when evaluating a make-or-buy decision are

• A)the quality of the outside supplier's product.
• B)whether the outside supplier can provide the needed quantities.
• C)whether the outside supplier can provide the product when it is needed.
• D)all of these.

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Definitions:

Unrealized Gain

The potential profit on an investment that has not been sold, reflecting an increase in value on paper but not realized as cash.

Dividend Revenue

Income earned from holding shares of a company that pays dividends.

Interest Revenue

Income earned on investments, savings accounts, and other financial instruments that pay interest.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.