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Make or Buy descions

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Make or Buy descions

  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 11, 2023 at 1:13 pm #675616
    JohnnySins
    Participant
    • Topics: 60
    • Replies: 38
    • ☆☆

    Sir when we choosing to make or buy a certain product we Choose via which gives the highest saving but if we look at key factor analysis we choose via which gives the highest contribution. is it possible that they give different directions to which product we should make?

    January 12, 2023 at 9:25 pm #675772
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    No – there is only one answer. We use the saving per unit of the limited resource as is explained in my free lectures.

    January 13, 2023 at 3:48 am #675791
    JohnnySins
    Participant
    • Topics: 60
    • Replies: 38
    • ☆☆

    So key factor analysis and the make or by descions would give the same product combintation to produce?

    January 13, 2023 at 8:39 pm #675855
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    Yes, if applied correctly as explained in my free lectures.

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