Of the Following,which Is NOT an Advantage of Making

question 29

Multiple Choice

Of the following,which is NOT an advantage of making?

• A) Knowledge of the product may provide efficiency advantages over potential suppliers.
• B) The firm has more control over quality.
• C) People producing the component or raw material have the incentive to improve their product.
• D) The firm has more control over deliveries.
• E) It secures the supply source.

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Definitions:

Average Annual Income

The average amount of money earned per year over a specified period.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period of time.

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.