Asked by Sygie Lamigo on Jul 09, 2024
Verified
What is the financial advantage (disadvantage) of purchasing the part rather than making it?
A) $273,000
B) ($126,000)
C) $147,000
D) $448,000
Financial Advantage
The benefit gained in financial terms from an action or investment, often measured in terms of profits, savings, or enhanced value.
Making Part
The process involved in the creation or manufacturing of components that will be used in the assembly of a final product.
Purchasing Part
A component required in the production process or maintenance of equipment, acquired through the procurement process.
- Learn about the rationale of make-or-buy decisions and their impact on financial conditions.
- Recognize crucial expenditures involved in make-or-purchase and specific order decision-making.
Verified Answer
Learning Objectives
- Learn about the rationale of make-or-buy decisions and their impact on financial conditions.
- Recognize crucial expenditures involved in make-or-purchase and specific order decision-making.
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