Faced with a long-run make-or-buy decision, the manager should do all of the following except: a. consider differences in the required capital investment and the timing of cash flows b. compare the cost of making the parts with the cost of buying them c. consider the quantity and quality of the parts as well as the technical know-how required d. use a cost study with only the
Faced with a long-run make-or-buy decision, the manager should do all of the following except: a. consider differences in the required capital investment and the timing of cash flows b. compare the cost of making the parts with the cost of buying them c. consider the quantity and quality of the parts as well as the technical know-how required d. use a cost study with only the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Faced with a long-run make-or-buy decision, the manager should do all of the following except:
a. consider differences in the required capital investment and the timing of cash flows
b. compare the cost of making the parts with the cost of buying them
c. consider the quantity and quality of the parts as well as the technical know-how required
d. use a cost study with only the differential costs and with no allocation of existing fixed overhead or profit
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