When Making a Make-Or-Buy Decision for a Part Used in a Product,which

question 26

Multiple Choice

When making a make-or-buy decision for a part used in a product,which of the following item is relevant to the decision?

• A) variable costs of making the part
• B) contribution margin on new products manufactured in idle area not used for making part
• C) rental income from idle plant when not making the part
• D) all of the above

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Definitions:

Power Relationship

The dynamics of control, influence, and authority between individuals or groups within an organization or social structure.

Decreased Competition

A market condition where there is a reduction in the number or intensity of competitors, often leading to increased prices and reduced consumer choice.

Competing Style

A conflict resolution approach where one party seeks to achieve their goals at the expense of others, showing a high concern for personal goals and low concern for relationships.

Decisive Action

Taking firm and clear actions in a swift manner to resolve an issue, make a choice, or advance towards a goal.