Of the following,which is NOT a disadvantage of making?
A) The firm has less control over quality.
B) It requires the company to have expertise in the production of the component or raw materials what will be made.
C) The people producing the component or raw material do not have the incentive to improve their product.
D) The firm may not be able to gain the economies of scale that can be gained by a supplier that is able to pool the activity of a large number of firms.
E) The firm would incur both fixed and variable costs.

Question

Quizplus · Accepted Answer

A) The firm has less control over quality is not a disadvantage of making; it's actually a disadvantage of outsourcing. Making in-house often allows for greater quality control.

Of the Following,which Is NOT a Disadvantage of Making