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

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

Quizplus · Accepted Answer

This is a make-or-buy decision as it involves deciding whether to make a component internally or purchase it from a supplier. Option A is incorrect as it refers to a decision to fulfill a specific customer order. Option B is incorrect as it refers to a decision to continue or discontinue a product line. Option D is partially correct, but since the question specifically asks about the make-or-buy decision, the correct answer is just C.

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