When faced with a make-or-buy decision,managers need which item of information about making?
A)Variable costs of making the item
B)Need for additional machinery
C)Incremental fixed costs
D)All of these choices

Question

Quizplus · Accepted Answer

Managers need all of these choices as they are important factors to consider when making a decision to make or buy a product. Variable costs of making the item are important to determine the cost per unit of production. The need for additional machinery is important to determine if additional capital expenditure is required to make the product in-house. Incremental fixed costs are important to determine if operating costs will increase as a result of making the product in-house.

When Faced with a Make-Or-Buy Decision,managers Need Which Item of Information