A Major Advantage of Making Components and Raw Materials In-House

question 52

True/False

A major advantage of making components and raw materials in-house is that the firm is not required to honor protections of intellectual property.

---

Definitions:

Flexible Budget

A budget that molds itself to fit changes in the volume or intensity of activity.

Other Expenses

Costs not directly related to the production or selling of goods and services, such as interest expenses and loss from foreign exchange.

Containers Refurbished

Used containers that have been restored to good condition and functionality for reuse.

Activity Variance

A measure of the difference between the actual level of activity and the planned level of activity.