Use the following to answer questions:
McCoy Industries (MI) produces ice cream supplies including bowls, scoops and shake makers. MI is considering outsourcing their shake makers. Juan Hernandez, the controller complied the following

information.
Mr. Hernandez assumes 100,000 shake makers will be sold. If the shake maker is outsourced, product level costs will increase by $35,000 to cover the increased cost of maintaining the relationship with the supplier. Other product level and facility level costs will not change.
-What other factors should Mr. Hernandez consider in outsourcing the shake makers?
A) The potential loss in control from outsourcing
B) The potential loss in innovation from outsourcing
C) The potential loss in quality from outsourcing
D) All of the above

Question

Use the following to answer questions:
McCoy Industries (MI) produces ice cream supplies including bowls, scoops and shake makers. MI is considering outsourcing their shake makers. Juan Hernandez, the controller complied the following
  
information.
Mr. Hernandez assumes 100,000 shake makers will be sold. If the shake maker is outsourced, product level costs will increase by $35,000 to cover the increased cost of maintaining the relationship with the supplier. Other product level and facility level costs will not change.
-What other factors should Mr. Hernandez consider in outsourcing the shake makers?
A) The potential loss in control from outsourcing 
B) The potential loss in innovation from outsourcing 
C) The potential loss in quality from outsourcing 
D) All of the above

Quizplus · Accepted Answer

Outsourcing can lead to a loss of control, innovation, and quality, as the company may rely on external providers who may not align perfectly with the company's standards and goals.

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