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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Definitions:

Vesting

The process by which an employee earns the right to receive full benefits from the employer's contribution to a pension plan or stock option plan over time.

Completed

The state of having finished all parts or aspects of a particular task or process successfully.

Assignment

The transfer of rights, property, or obligations from one party to another, often seen in contracts and lease agreements.

Contractual Obligations

Duties that a party is legally bound to perform as per the terms of a contract.