Decision Making-I (Make or Buy)

Question 1

What two factors to be considered in make or buy decsion

Answer 1

1. Whether surplus capacity exists
2. The marginal cost

Question 2

Make or Buy-Ex 1

Answer 2

Question 3

Minimum sales required for Inhouse (when further investment i.e. FC required)

Answer 3

Question 4

Buy or make with limiting factor

Answer 4

Question 5

Make or Buy decision @various capacity levels

Answer 5

Question 6

Make or Buy with Opportunity cost

Answer 6