What Are the Factors to Be Considered by Managers When

question 4

Essay

What are the factors to be considered by managers when making a make, buy, or rent decision to satisfy the IT needs of their firms?

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Definitions:

Variable Cost

Costs that vary directly with the level of production or business activity, such as materials and labor.

Variable Cost

Costs that change in proportion to the level of goods or services a company produces.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance.

Net Income

The net income of a company, calculated by deducting all costs, taxes, and expenses from its total revenue.