Accuracy of cost estimates is one of the uncertainties in this type of decision:
I. Special order
II. Make or buy
III. Product emphasis
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

All three types of decisions (special order, make or buy, and product emphasis) involve some level of uncertainty around cost estimates. Special orders may have unique production requirements and associated costs that are difficult to estimate, while make or buy decisions require accurate cost comparisons between in-house production and outsourcing options. Similarly, product emphasis decisions involve forecasting demand, production costs, and sales revenues for different product lines, adding another layer of uncertainty to cost estimates. Thus, all three types of decisions require accurate cost estimates and involve a high degree of uncertainty.

Accuracy of Cost Estimates Is One of the Uncertainties in This