When evaluating a make-or-buy decision, which of the following needs to be considered?
A) alternative uses of the production capacity
B) the original cost of the production equipment
C) pension costs to the current employees
D) material-handling costs that cannot be eliminated

Question

Quizplus · Accepted Answer

When evaluating a make-or-buy decision, alternative uses of the production capacity should be considered as they may affect profit and loss. The original cost of the production equipment, pension costs to the current employees, and material-handling costs that cannot be eliminated may also be important factors, but they are not necessary in all cases.

When Evaluating a Make-Or-Buy Decision, Which of the Following Needs