________ would be a consideration in a make-or-buy decision.
A)Excess capacity
B)Rental income from unused facilities
C)Variable factory overhead
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In a make-or-buy decision, excess capacity should be considered because if a company has excess capacity, it may be more cost-effective to produce the item in-house rather than outsourcing it. Rental income from unused facilities should also be considered because if the company decides to outsource the item, it may be able to generate rental income by leasing out unused production facilities. Variable factory overhead is also a consideration because it is a cost that will be incurred regardless of whether the item is produced in-house or outsourced. Therefore, all of these factors should be considered in a make-or-buy decision.

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