Make-or-buy options often arise when a manufacturer has excess productive capacity in the form of unused equipment, space, and labor.

Question

Quizplus · Accepted Answer

This statement is true. When a manufacturer has excess productive capacity, they may consider whether it is more cost-effective to produce a particular product or service in-house (make) or to outsource it from another supplier (buy).

Make-Or-Buy Options Often Arise When a Manufacturer Has Excess Productive