A key factor in a make-or-buy decision is _____.
A)whether or not there are idle facilities
B)the amount of the sunk costs
C)gain or loss on the disposal of equipment
D)the total joint costs

Question

Quizplus · Accepted Answer

A key factor in a make-or-buy decision is whether or not there are idle facilities. This means that if a company already has the necessary facilities and resources to produce a product or service, it may be more cost-effective to make the product in-house rather than buying it from another company. Therefore, the presence or absence of idle facilities can significantly impact the decision to make or buy.

A Key Factor in a Make-Or-Buy Decision Is _____