The value-chain analysis used regarding the "make-or-buy decision" often leads a firm to make use of:
A) Activity-based costing (ABC).
B) Cost-volume profit (CVP) analysis.
C) Outsourcing options.
D) Relevant cost-based pricing.
E) Value stream accounting.

Question

Quizplus · Accepted Answer

The make-or-buy decision involves analyzing the costs and benefits of producing a product or service in-house versus outsourcing it from another company. Therefore, outsourcing options are often considered in this analysis. Activity-based costing (ABC) and cost-volume profit (CVP) analysis may also be used to determine the costs of producing the product or service, but they do not directly address the make-or-buy decision. Relevant cost-based pricing and value stream accounting are not typically used in this particular analysis.

The Value-Chain Analysis Used Regarding the "Make-Or-Buy Decision" Often Leads