When deciding whether to outsource or insource a product or service, managers consider:
A) The reliability of the product or service supplier
B) All of the fixed costs
C) Only the variable costs
D) No qualitative factors

Question

Quizplus · Accepted Answer

Managers should consider the reliability of the product or service supplier when deciding whether to outsource or insource. This is because outsourcing involves relying on an external supplier to provide the product or service, and if the supplier is unreliable, it can cause disruptions to the company's operations. Therefore, choosing a reliable supplier is essential to ensure the quality and consistency of the product or service.

When Deciding Whether to Outsource or Insource a Product or Service