When Evaluating a Make-Or-Buy Decision, Which of the Following Needs

question 15

Multiple Choice

When evaluating a make-or-buy decision, which of the following needs to be considered?

• A) alternative uses of the production capacity
• B) the original cost of the production equipment
• C) pension costs to the current employees
• D) material-handling costs that cannot be eliminated

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Definitions:

Legislative Body

An official organization or group of people who have the power to make, change, or repeal laws.

Secondary Sources

Informational materials that interpret, critique, or analyze primary sources, often used in academic research.

Uniform Law

A model law created by the National Conference of Commissioners on Uniform State Laws and/or the American Law Institute for the states to consider adopting. If a state adopts the law, it becomes statutory law in that state. Each state has the option of adopting or rejecting all or part of a uniform law.

Statutory Law

The body of law enacted by legislative bodies (as opposed to constitutional law, administrative law, or case law).