Reasons for making component parts rather than buying them include the following reasons except
A) more complete utilization of plant capacity
B) a secret design may be protected
C) limit working capital requirements
D) products may be of higher quality than those available from outside suppliers

Question

Quizplus · Accepted Answer

The reasons for making component parts rather than buying them include more complete utilization of plant capacity, protecting a secret design, and producing products of higher quality. The option that is not a reason for making component parts is limiting working capital requirements. In fact, making component parts can often lead to an increase in working capital requirements due to the need to invest in equipment, materials, and labor for production.

Reasons for Making Component Parts Rather Than Buying Them Include