A decision whether to continue to make a product or buy it externally depends on the external price and the amount of variable and fixed costs that can be eliminated assuming no alternative uses of resources.

Question

Quizplus · Accepted Answer

This statement accurately reflects the factors that should be considered when making a decision between make or buy. The external price and the costs that can be eliminated are key determinants of which option will be more cost-effective.

A Decision Whether to Continue to Make a Product or Buy