Question

In: Accounting

What are some non-quantitative factors that must be taken into account before we decide whether we...

What are some non-quantitative factors that must be taken into account before we decide whether we should manufacture in-house or we should outsource it to a vendor /supplier. Explain with examples atleast 3 such factors or considerations that we must examine.

Solutions

Expert Solution

ANSWER

the following are the non quantitative factors:

The accompanying Qualitative (non – quantitative) variables ought to be considered in make versus purchase

  • Provider Dependability

The providers must be solid and reliable to gracefully the necessary segments on schedule and guarantee there is no business misfortune due to non accessibility of the segments to be provided for creation.

  • Quality elements

The providers' parts ought to be quality consistent and there ought to be no bad things to say because of value issues. Nature of part is of most extreme significance and assumes a significant job in getting the thing from the provider.

  • Effect on existing providers

The effect on existing providers who are providing parts to make the item ought to be contemplated. Especially if there is volume responsibility given to existing providers the equivalent ought to be re-haggled so the connection with existing merchants won't become antagonistic


Related Solutions

Explain the terms leading and lagging and outline the factors that must be taken into account...
Explain the terms leading and lagging and outline the factors that must be taken into account before this approach is used.
a) What non-accounting factors are important before evaluating whether a pending lawsuit should be accrued as...
a) What non-accounting factors are important before evaluating whether a pending lawsuit should be accrued as a liability and reflected in the financial statements? b) What accounting factors should be considered in determining whether a pending lawsuit should be accrued as a liability and reflected in the financial statements? 350 word minimum please.
Decide whether a booking must be made for the following business transactions and enter the account...
Decide whether a booking must be made for the following business transactions and enter the account name and amount. The sales tax (VAT) may have to be taken into account with 18%. If no booking record has to be formed, please make this clear with "No booking record". Info: Elektrovolt A.Ş., an industrial company, produces sockets and mainly supplies them to Cereyan A.Ş., a trading company. Unless otherwise stated, create the posting records for the following business transactions as of...
What factors influence and are taken into account when imposing a tax?
What factors influence and are taken into account when imposing a tax?
Before lending someone​ money, banks must decide whether they believe the applicant will repay the loan....
Before lending someone​ money, banks must decide whether they believe the applicant will repay the loan. One strategy used is a point system. Loan officers assess information about the​ applicant, totaling points they award for the​ person's income​ level, credit​ history, current debt​ burden, and so on. The higher the point​ total, the more convinced the bank is that​ it's safe to make the loan. Any applicant with a lower point total than a certain cutoff score is denied a...
Why do customers terminate relationships? Provide some examples. What factors should be taken into account when...
Why do customers terminate relationships? Provide some examples. What factors should be taken into account when planning reward and recognition programs?
Maplewood Company must decide whether to make or buy some of its components. The costs of...
Maplewood Company must decide whether to make or buy some of its components. The costs of producing 59,600 switches for its generators are as follows. Direct materials $30,396 Variable overhead $47,680 Direct labour 42,912 Fixed overhead 57,216 Instead of making the switches at an average cost of $2.99 ($178,204 ÷ 59,600), the company has an opportunity to buy the switches at $2.79 per unit. If the company purchases the switches, all the variable costs and one-third of the fixed costs...
Wilma Company must decide whether to make or buy some of its components. The costs of...
Wilma Company must decide whether to make or buy some of its components. The costs of producing 60,200 switches for its generators are as follows. Direct materials $29,900 Variable overhead $45,700 Direct labor $25,990 Fixed overhead $76,000 Instead of making the switches at an average cost of $2.95 ($177,590 ÷ 60,200), the company has an opportunity to buy the switches at $2.67 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs...
Oriole Company must decide whether to make or buy some of its components. The costs of...
Oriole Company must decide whether to make or buy some of its components. The costs of producing 60,200 switches for its generators are as follows. Direct materials $29,900 Variable overhead $45,700 Direct labor $25,990 Fixed overhead $76,000 Instead of making the switches at an average cost of $2.95 ($177,590 ÷ 60,200), the company has an opportunity to buy the switches at $2.67 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs...
Wildhorse Company must decide whether to make or buy some of its components. The costs of...
Wildhorse Company must decide whether to make or buy some of its components. The costs of producing 68,900 switches for its generators are as follows. Direct materials $30,200 Variable overhead $44,600 Direct labor $46,455 Fixed overhead $82,000 Instead of making the switches at an average cost of $2.95 ($203,255 ÷ 68,900), the company has an opportunity to buy the switches at $2.66 per unit. If the company purchases the switches, all the variable costs and one-fourth of the fixed costs...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT