The factor, which is largely considered in making or buying decisions is __________?
Correct answer: D. both a and b
- A. quality of suppliers
- B. dependability of suppliers
- C. production irrelevancy
- D. both a and b
Explanation
A make-or-buy decision considers more than numerical cost, including whether an outside supplier can provide dependable deliveries and acceptable quality. Thus both supplier quality and dependability are important factors.
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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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