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on equipment used in making the component and having no other use is the critical factor in the decision.

on equipment used in making the component and having no other use is the critical factor in the decision.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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52. Which of the following is true for a make-or-buy decision?

Group of answer choices
b. Depreciation on equipment used in making the component and having no other use is the critical factor in the decision.
c. The company should make the component if the purchase price is less than the per-unit variable cost to make the component.
d. The reliability of the outside supplier of the component is unimportant to the decision as this is not quantifiable.
e. The quality of the component from the outside supplier is relevant in eventually making the decision.
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