PQK Corporation produces and sells bookends. Its managers are considering whether to outsource the task of cutting the wood for the bookends to DLN Corporation. Which of the following is most likely to be a qualitative factor that managers will consider in making the decision?
A) Cost of delivery
B) Timeliness of delivery
C) Whether DLN will outsource the delivery process
D) Amortization on DLN's fleet of delivery trucks

Question

Quizplus · Accepted Answer

Timeliness of delivery is a qualitative factor that managers will consider. Qualitative factors are non-financial factors such as quality, customer service, and timeliness. In this case, the managers will want to ensure that the wood is cut and delivered in a timely manner to avoid delays in their production process. The other options listed are all financial factors and not qualitative factors.

PQK Corporation Produces and Sells Bookends