Asked by
Astrid Gonzalez
on Oct 23, 2024
Verified
For a firm that currently makes a particular component, which of the following are qualitative factors that would be considered following a quantitative analysis in favour of buying?
A) Buying increases uncertainty, in particular with respect to timely availability of the component.
B) Buying surrenders control over product design and quality.
C) Employee morale would be affected if a decision to buy meant dismissing staff.
D) All of the given answers
Qualitative Factors
Qualitative factors are non-numeric variables or considerations that affect decision-making, such as company reputation or customer satisfaction.
Buying
The process of acquiring goods or services, typically for business operations or personal use.
Employee Morale
The overall satisfaction, outlook, and feelings of well-being that an employee experiences at their workplace.
- Outline the variances among sunk costs, opportunity costs, and relevant costs for effective decision-making.
- Describe and apply the decision-making process in management accounting contexts.
Verified Answer
MH
Learning Objectives
- Outline the variances among sunk costs, opportunity costs, and relevant costs for effective decision-making.
- Describe and apply the decision-making process in management accounting contexts.