Management is often faced with the alternative of continuing to make a product or component internally, or going to an external source and purchasing the product or component. In gathering relevant information for these two alternatives, briefly identify the quantitative factors that should be considered. Are there any qualitative factors that should also be considered?

Management is often faced with the alternative of continuing to make a product or component internally, or going to an external source and purchasing the product or component. In gathering relevant information for these two alternatives, briefly identify the quantitative factors that should be considered. Are there any qualitative factors that should also be considered?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Critically discuss and distinguish Informative efficiency, Fundamental Valuation efficiency and Information Arbitrage efficiency, using examples as well (if possible).
– Based on the assignment and what you know about managementaccounting, what do you believe is the purpose of a cost element? - What is one advantage of creating a vendor master record?
Consider an organization of your choosing that might be creating a survey for a product or service. Write two example questions that you would use to interpret descriptive statistics and two example questions that you would use to interpret inferential statistics.
discuss the advantages and disadvantages of economic value added for performance measurement
Choose the most appropriate answer(s): Calculation of product cost, gathering information for planning and analyzing information for decisions making are features of: information accounting cost accounting analyzing accounts marketing costs
Looking from a managerial perspective, why would a firm use a balanced scorecard in evaluating performance? What benefits would be derived from the use of this measure? Please provide at least 2 references to back up your opinion.
What is sensitivity analysis? How do managers use this tool?
An information which provides feedback about previous evaluations is regarded as having. a. Futuristic value b. Predictive value c. Confirmatory value d. Relevant value
What is the primary goal of environmental reporting? A) To provide financial forecasts B) To disclose environmental performance and impact C) To improve product design D) To enhance customer relations
Match each of the components of relevance with its definition. Relevance Definitions 1 . Confirmatory value 2 . Predictive value 3 . Materiality a. Information is useful in helping to forecast future outcomes. b. Information provides feedback on past activities. c. The nature or amount of an item has the ability to affect decisions.
Advise Flyers plc’s senior executive team on the commentsmade by Changying Simmonds and Travis van Riemsdyk. Youradvice should include an explanation of the characteristics ofinvestment appraisal decisions and the advantages anddisadvantages of the IRR.
Can you explain the comparables method?( Must include how it works , key factors ,how we determine the more effective company)