Cisco, a provider of modems and routers has decided it is more profitable to outsource its production than to make it themselves. To decide this, they have performed __________.
A) sensitivity analysis
B) make-or-buy analysis
C) scenario analysis
D) financial modeling

Question

Quizplus · Accepted Answer

Make-or-buy analysis is specifically used to decide whether it is more cost-effective for a company to produce goods in-house or to purchase them from an external supplier. Cisco's decision to outsource production of modems and routers would be based on this type of analysis.

Cisco, a Provider of Modems and Routers Has Decided It