What Is a Qualitative Factor in a Make-Or-Buy Decision

question 116

Multiple Choice

What is a qualitative factor in a make-or-buy decision?

• A)variable manufacturing costs
• B)avoidable costs
• C)long-term relationship with supplier
• D)opportunity costs

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Definitions:

Finance Expansion

The process of securing funds to increase business operations, typically through loans, equity financing, or reinvestment of profits.

Embedded Debt Cost

The implicit interest rate or cost present in an obligation that may not be evident as a direct interest rate.

Tax Rate

The tax rate is the percentage at which an individual or corporation is taxed by the government, applicable to income, property, sales, etc.

Cost of Capital

The minimum earnings a firm should achieve on its investment initiatives to preserve its market worth and meet investor expectations.