Which qualitative factor should NOT be considered when evaluating a make-or-buy decision?
A)the quality of the outside supplier's product
B)whether the outside supplier can provide the needed quantities
C)whether the outside supplier can provide the product when it is needed
D)the split-off costs of the product

Question

Quizplus · Accepted Answer

Split-off costs are a quantitative factor that refers to the costs incurred up to the point when a product becomes separate and identifiable in the production process. Thus, it should not be considered as a qualitative factor when making a make-or-buy decision that involves the evaluation of various non-financial aspects such as product quality, reliable delivery, supplier reputation, and compatibility with organizational objectives.

Which Qualitative Factor Should NOT Be Considered When Evaluating a Make-Or-Buy