Use What You Understand About the Outsourcing Decision (Make Vs

question 55

Essay

Use what you understand about the outsourcing decision (Make vs.Buy) to answer this question.List and explain three reasons a restaurant might decide to buy pre-made desserts from a supplier rather than making the goods from scratch.

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Definitions:

Subsidiary

A company that is completely or partially owned and controlled by another company, known as the parent company.

Identifiable Asset

An asset that can be separated and sold, transferred, or licensed, and has a clear value or benefit to the business.

Amortize

The process of slowly paying off a debt through regular payments over a set period of time.

Infinite Life

A concept in accounting and finance where an asset is considered to have an unlimited useful life and therefore is not depreciated or amortized.