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

question 34

Multiple Choice

Raj's company can either make the components or buy them.In which situation should he decide to make the components rather than buy them from a supplier?

• A)When utilisation of plant capacity permits more economical production.
• B)When an outside supplier specialises in the production of that component.
• C)If in-house operations can concentrate on the business's specialty - the finished product.
• D)If the risk of equipment obsolescence can be transferred to the supplier.

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