For companies operating in the global marketspace, certain special decisions (make or buy also known as outsourcing, special order, or equipment purchasing decisions) can have both quantitative and qualitative considerations, which may or may not outweigh a favorable calculated outcome. Vetting each qualitative and quantitative matter takes time and resources, but it is necessary to make sure the company makes sound business decisions from both perspectives. For this week’s discussion, consider one of the below three questions and respond to them with your initial posts. Describe the reasons that a company may face a special order or outsourcing opportunity. How do they conduct a comprehensive cost analysis before trying to make a decision? What are the key cost components they should consider, and what criteria do they use to determine whether it's financially viable? What risks are associated with accepting a special order or outsourcing, and how should a company evaluate and mitigate them? How does risk tolerance factor into this decision-making process? How should a company consider the impact on customer relationships when deciding on a special order? What strategies can be employed to ensure customer satisfaction during these decisions? If you have a specific example of a company that has faced this type of decision, share the background and details of this decision. What factors were important in making the final choice, and what were the outcomes?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 6EA: As manager of department B in MarIeys Manufacturing, based on the costs you identified in the...

See similar textbooks

Related questions

Question

For companies operating in the global marketspace, certain special decisions (make or buy also known as outsourcing, special order, or equipment purchasing decisions) can have both quantitative and qualitative considerations, which may or may not outweigh a favorable calculated outcome. Vetting each qualitative and quantitative matter takes time and resources, but it is necessary to make sure the company makes sound business decisions from both perspectives.

For this week’s discussion, consider one of the below three questions and respond to them with your initial posts.

Describe the reasons that a company may face a special order or outsourcing opportunity. How do they conduct a comprehensive cost analysis before trying to make a decision? What are the key cost components they should consider, and what criteria do they use to determine whether it's financially viable?
What risks are associated with accepting a special order or outsourcing, and how should a company evaluate and mitigate them? How does risk tolerance factor into this decision-making process? How should a company consider the impact on customer relationships when deciding on a special order? What strategies can be employed to ensure customer satisfaction during these decisions?
If you have a specific example of a company that has faced this type of decision, share the background and details of this decision. What factors were important in making the final choice, and what were the outcomes?

AI-Generated Solution

AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.