Indicate whether each of the following statements about outsourcing decisions is true or false.An outsourcing decision involves a purchase offer from a customer at a lower-than-normal selling price._____Outsourcing would increase a company's level of vertical integration._____To evaluate an outsourcing decision, a manager should compare the avoidable cost of making an item to the cost of buying it._____The decision to outsource a particular product is not affected by the amount of the product needed._____Reliability of the supplier is a critical issue in an outsourcing decision._____
What will be an ideal response?
| An outsourcing decision involves a purchase offer from a customer at a lower-than-normal selling price. | F |
| Outsourcing would increase a company's level of vertical integration. | F |
| To evaluate an outsourcing decision, a manager should compare the avoidable cost of making an item to the cost of buying it. | T |
| The decision to outsource a particular product is not affected by the amount of the product needed. | F |
| Reliability of the supplier is a critical issue in an outsourcing decision. | T |
Business
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