When evaluating a make-or-buy decision,which of the following does NOT need to be considered?
A)The original cost of the production equipment
B)The reliability of the supplier's delivery schedule
C)The quality of the supplier's product
D)Alternative uses of the production capacity

Question

Quizplus · Accepted Answer

The original cost of the production equipment is not relevant when evaluating a make-or-buy decision because it has already been incurred regardless of whether the company chooses to make or buy the product. The other options (B, C, and D) are all important factors to consider when making the decision.

When Evaluating a Make-Or-Buy Decision,which of the Following Does NOT