In a Make or Buy Decision,the Reliability of a Potential

question 101

Multiple Choice

In a make or buy decision,the reliability of a potential supplier is

• A)an irrelevant decision factor.
• B)relevant information if it can be quantified.
• C)an opportunity cost of continued production.
• D)a qualitative decision factor.

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Definitions:

Inventory

The goods and materials held by a business for the purpose of sale, manufacturing, or production.

Plant Insurance

Insurance coverage specifically designed to protect the physical assets of a manufacturing or production facility, including buildings and machinery.

Indirect Materials

Materials used in the production process, but cannot be directly linked to a specific product.

Indirect Labor

Costs for labor that are not directly associated with the production of goods or delivery of services, such as maintenance staff.