A decision to make a component internally versus purchasing from a supplier is a
A) special-order decision.
B) keep-or-drop a product-line decision.
C) make-or-buy decision.
D) both a and c.

Question

Quizplus · Accepted Answer

The decision to make a component internally versus purchasing from a supplier is a make-or-buy decision. The best choice depends on various factors, such as the cost of manufacturing, the quality control that can be maintained, the availability of resources, and the expertise required. If the cost of manufacturing is lower than purchasing from a supplier and maintaining control over the quality is beneficial, then making the component internally would be a better choice. However, if purchasing from a supplier is more cost-effective, and the quality standards can be met, then buying from the supplier would be a better option. Ultimately, the best choice depends on a variety of considerations unique to each situation.

A Decision to Make a Component Internally Versus Purchasing from a Supplier