A Decision Whether to Continue to Make a Product or Buy

question 173

True/False

A decision whether to continue to make a product or buy it externally depends on the external price and the amount of variable and fixed costs that can be eliminated assuming no alternative uses of resources.

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Definitions:

Communication Barrier

Any obstacle that impedes the flow of information between individuals or groups, making communication less effective.

Filtering

The process of selectively presenting information, often to remove or reduce the impact of potentially negative aspects.

Speedy Response

Prompt action or reply to inquiries, situations, or requirements.

Increased Expectation

The rising demands or standards one is expected to meet, often leading to added pressure.