Purchase Solution

Opportunity cost & make or buy decisions

Not what you're looking for?

Ask Custom Question

How does opportunity cost enter into the make or buy decision? What would be an example of a decision that you might make in your personal life that would involve an opportunity cost? What decision would you make and how would you change the opportunity cost if you needed to?

Purchase this Solution
Solution Summary

The solution discusses opportunity costs and make or buy decisions, and other aspects of opportunity costs. It is a brief, concise answer provided in about 100 words.

Solution Preview

The cost of what is given up must be considered in the decision. If the company decides to make the product, the opportunity costs ...

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Introduction to Finance

This quiz test introductory finance topics.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

View More Free Quizzes
Related BrainMass Solutions

  • Why are opportunity costs relevant when making decisions?

    If you were going to sublet the space regardless of whether you made the subassembly or not, it is no longer relevant to the decision because it is not contingent on the choice of whether to make or buy the part.

  • Outsourcing

    207852 Cost Factors in Outsourcing Decisions for Payroll Accounting 1. Outsourcing Decisions Decisions on whether to outsource services such a payroll accounting and systems development are much like make-or-buy decisions.

  • Following are examples of typical economic decisions made by

    450976 Following are examples of typical economic decisions made by the managers of a firm. Determine whether each is an example of what, how or for whom. a- Should a company make its own spare parts or buy them from an outside vendor ?

  • Management accounting: Morgan Co, Sweet Shoppe Creamery

    For make-or-buy decisions, which items are always relevant? A. Incremental costs and incremental revenues. B. Differential costs and opportunity costs. C. Differential costs and sunk costs. D.

  • Relevant Costs for Decision Making

    In general, opportunity costs are relevant if the opportunities are different between or among the options. 4. In a make-or-buy situation, all costs and revenues that are different between the option to make and the option to buy are relevant.

  • Lease or Buy - Healthcare Equipment

    By analyzing the available alternatives & the opportunity cost, firms can make well informed decisions on the optimum use of their available resources to accomplish their objective and goals.

  • Discussing Relevant Costs for Decision Making

    In a make-or-buy situation, all costs and revenues that are different between the option to make and the option to buy are relevant. 1.

  • five steps involved in managerial decision making, sunk cost

    That salary is the opportunity cost of getting your degree. A sunk cost is one that is already spent or committed. You cannot avoid it. The cost of the old equipment from the discussion above is a sunk cost. Why? You can't "not buy" it.

  • Making the Rent vs. Buy Decision

    Buy Decision Making the Rent vs Buy Decision This project provides an opportunity for you to help a real-world company make a decision about whether to rent or buy new technology.

View More Related Solutions