What would be a consideration in a make-or-buy decision?
A)excess capacity
B)variable factory overhead costs
C)rental income from idle facilities when not making a part
D)all of the above

Question

Quizplus · Accepted Answer

In a make-or-buy decision, all of the factors listed (excess capacity, variable factory overhead costs, and rental income from idle facilities) should be considered to make the best decision. Excess capacity could make it more efficient to produce the part in-house, while rental income from idle facilities could offset the cost of outsourcing. Similarly, variable factory overhead costs might favor one option over the other. Ultimately, all of these factors should be considered holistically to make the best decision.

What Would Be a Consideration in a Make-Or-Buy Decision