If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs.

Name: If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs.
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Question

Quizplus · Accepted Answer

The decision to make or buy is not based solely on fixed costs; it also involves considering the total costs (including both variable and fixed costs), capacity, expertise, quality, and strategic factors.

If the Unit Cost to Buy Something Is Less Than