Raj's Company Can Either Make the Components or Buy Them

question 5

Multiple Choice

Raj's company can either make the components or buy them. He should decide to make the components rather than buy them from a supplier

• A) when utilization of plant capacity permits more economical production.
• B) when an outside supplier specializes in the production of that component.
• C) if in-house operations can concentrate on the firm's specialty-the finished product.
• D) if the risk of equipment obsolescence can be transferred to the supplier.