Which of the Following Statements Is True About Make-Or-Buy Decisions

question 142

Multiple Choice

Which of the following statements is true about make-or-buy decisions?

• A) Make-or-buy decisions are applicable only to physical products and not service activities.
• B) Historically, most outsourcing decisions have involved the manufacture of physical products.
• C) Information technology companies in the United States are testing code in-house and outsourcing the code writing process.
• D) Domestic businesses do not suffer from problems regarding outsourcing decisions.
• E) Volatile exchange rate movements complicate outsourcing decisions.

---

Definitions:

T Account

A graphical representation of a ledger account, used in accounting to depict debits and credits.

Debits

Entries made on the left-hand side of an accounting ledger, typically indicating increases in assets or expenses or decreases in liabilities, equity, and income.

Credits

Entries in accounting that represent the transfer of value and can decrease assets or increase liabilities and equity.

Account Balance

The amount of money in a financial repository at any given time, which can be a positive or negative value.