The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as __________?
Correct answer: D. make or buy decisions
- A. demand or supply decisions
- B. idle or busy decisions
- C. relevant or irrelevant decision
- D. make or buy decisions
Explanation
A make-or-buy decision compares producing a product internally with purchasing it from an outside supplier. “Outsource” describes the buying side, but the standard name for the complete choice is make or buy.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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