This objective test question contains a question type which will only appear in a computer-based exam, but this question provides valuable practice for all students whichever version of the exam they are taking.
In a make or buy decision which FOUR of the following are to be correctly included in the considerations? Select all that apply.
(i) The amount of re-allocated rent costs caused by using the production space differently.
(ii) The variable costs of purchase from the new supplier.
(iii) The amount of the bribe from the potential new supplier.
(iv) The level of discount available from the new supplier.
(v) The redundancy payments to the supervisor of the product in question.
(vi) The saved labour costs of the production staff re-directed to other work.
(vii) The materials no longer bought to manufacture the product.
