A company is unsure whether it is more cost efficient to make or buy a component used in a manufactured product that is mass produced.What type of information is needed to make this decision?

Question

Quizplus · Accepted Answer

To make this decision, problem-solving information is needed, such as the cost of producing the component in-house (including materials, labor, and overhead costs) compared to the cost of purchasing the component externally. Other factors to consider may include quality control, lead times, and potential supplier dependencies. Scorekeeping, attention directing, and management auditing are not directly relevant to this decision.

A Company Is Unsure Whether It Is More Cost Efficient