Make versus Buy Decisions Multiple Choice Questions with Answers – PDF Download

MCQ 1: The factor, which is largely considered in making or buying decisions is:

1. quality of suppliers
2. dependability of suppliers
3. production irrelevancy
4. both a and b

MCQ 2: The difference that exists between total revenues, can be earned from two different alternatives is termed as:

1. independent revenue
2. incremental revenue
3. differential revenue
4. dependent revenue

MCQ 3: The decisions made by company, which products to manufacture and sell and in what quantities, of many product lines are called:

1. incremental decisions
2. outsource decisions
3. product mix decisions
4. in-source decisions

MCQ 4: The low level managers in organizations are to make decisions about:

1. net income irrelevancy
2. operating income maximization
3. operating income minimization
4. operating income relevancy

MCQ 5: Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as:

1. outsourcing
2. insourcing
3. idle sourcing
4. sunk sourcing