Meow Cat Toys utilizes Lincoln Fabrics by purchasing the fabric to cover toy mice for its mouse toy division.As it pertains to Lincoln Fabrics, what decision situation does this create?
A)Make or buy
B)Sell or process further
C)Relevant costing
D)Budgeting

Question

Quizplus · Accepted Answer

The decision situation created here is whether to make (produce the fabric in-house) or buy (purchase the fabric from a supplier). Meow Cat Toys has opted to buy the fabric from Lincoln Fabrics, indicating that they have made a decision to outsource the production of the fabric instead of producing it themselves.

Meow Cat Toys Utilizes Lincoln Fabrics by Purchasing the Fabric