Ask a question from expert

Ask now

ACC 202 : Principles of Managerial Accounting Assignment

5 Pages914 Words270 Views
   

Added on  2019-10-31

ACC 202 : Principles of Managerial Accounting Assignment

   Added on 2019-10-31

BookmarkShareRelated Documents
Running head: MANAGEMENT ACCOUNTINGManagement AccountingName of the Student:Name of the University:Author’s Note:Course ID:
ACC 202 : Principles of Managerial Accounting Assignment_1
1MANAGEMENT ACCOUNTINGAnswer to Question f:The decision regarding whether a business needs to manufacture or purchase a productdepends on both tangible and intangible factors, which might change with the passage of time.Manufacturing the products in-house might help in saving money and time. However, it isconvenient as well to purchase from a vendor specialising in the particular item. Moreover,making a product from the initial stage could be a method of providing additional work for thevalued staffs during the slowdown of the business. A make or buy decision is the act of selecting between making a product or purchasingthe same from an external supplier. In make or buy decision, the most significant factors to betaken into account include portion of quantitative evaluation like the related production cost andwhether the organisation has the capacity to manufacture at the needed levels. It is referred as thedecision of outsourcing, as it contrasts the benefits and costs related to production of a particularproduct or service internally to the benefits and costs associated with hiring an external supplierfor the questionable resources. In order to contrast the costs rightfully, each aspect about theacquisition and item storage needs to be taken into consideration. The primary factors to be considered in deciding whether to manufacture the canisters orbuy the same from the outside supplier include the following:Quality:If Playdough Company could develop a product, which is better in contrast to purchasingfrom a vendor, it is necessary to make the canisters in-house. It is assumed that the organisationcould charge a greater price in justifying labour and materials. However, if the organisation fails
ACC 202 : Principles of Managerial Accounting Assignment_2

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Make or Buy Decisions Analysis | Assignment
|10
|1220
|375

ACC20014 - Playdough Company - Report
|10
|2745
|80

Assignment Management Accounting | Calculation of Costs
|9
|1533
|163

Project Report | Management Accounting
|3
|444
|45

Management Accounting | Questions and Answers
|8
|1747
|194

Management Accounting – Case Study: Make or Buy Decisions
|6
|1141
|105