When dealing with Make or Buy - we have several alternatives that could be possible. Like with any problem associated with relevant decision making, we have to list all of our alternatives side by side and choose the best one. Yet, as we've discussed, there are items that are important that can be non-financial. For instance, if a series of alternatives suggests we should drop a product line because the numbers say it'd be a good move, do we just do it? What about the political fall out? The loss of jobs? All of these things need to be weighed when making these all to complicated decisions
When dealing with Make or Buy - we have several alternatives that could be possible. Like with any problem associated with relevant decision making, we have to list all of our alternatives side by side and choose the best one. Yet, as we've discussed, there are items that are important that can be non-financial. For instance, if a series of alternatives suggests we should drop a product line because the numbers say it'd be a good move, do we just do it? What about the political fall out? The loss of jobs? All of these things need to be weighed when making these all to complicated decisions.
In accounting in general and in capital budgeting in particular we come across make or buy situations.
In such a situation we have to choose between manufacturing a product in house or buying it from an external third party.
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