For make-or-buy decisions,a supplier's ability to deliver the item on a timely basis is considered a(n):
A)relevant cost.
B)opportunity cost.
C)qualitative factor.
D)differential factor.

Question

Quizplus · Accepted Answer

The ability of a supplier to deliver the item on a timely basis is a qualitative factor that is important to consider in make-or-buy decisions. It is not considered a cost or differential factor, and while it may indirectly affect opportunity cost, it is not a direct factor in determining opportunity cost. Therefore, the best choice is C) qualitative factor.

For Make-Or-Buy Decisions,a Supplier's Ability to Deliver the Item on a Timely