All of the following are variables that could be considered in a decision to outsource a component that is currently being produced in-house.Which of the following is not likely to be relevant?
A) The impact on employee morale
B) The book value of equipment used in making the component
C) The importance of vertical integration to the company
D) The reliability of the supplier

Question

Quizplus · Accepted Answer

The book value of equipment used in making the component is not likely to be relevant as it is not an indicator of the benefits or drawbacks of outsourcing. The other three variables (impact on employee morale, importance of vertical integration, and reliability of the supplier) are all important factors to consider in a decision to outsource a component.

All of the Following Are Variables That Could Be Considered