Several potential benefits exist when a buying firm pays for and takes title to special tooling.Which is not one of the potential benefits?
A) The buying firm gains greater control
B) Insurance costs are lower
C) Analysis of production costs is easier
D) Labor learning curve effect is reduced
E) Tooling can be moved if needed

Question

Quizplus · Accepted Answer

Insurance costs may be higher for the buying firm if they are responsible for the special tooling. The other potential benefits listed are accurate, including greater control over production, easier analysis of costs, reduction of labor learning curve, and the ability to move the tooling if needed.

Several Potential Benefits Exist When a Buying Firm Pays for and Takes