--%>

What is Make-Buy Analysis

Make-Buy Analysis: Business decision which compares the costs and advantages of manufacturing a product or product component alongside purchasing it. When the purchase price is high than what it would cost the manufacturer to prepare it, or when the manufacturer has surplus capacity that could be employed for that product, or the manufacturer's suppliers are not reliable, then the manufacturer might select to make the product. This supposes the manufacturer contains the skills and equipment essential, access to raw materials, and the capability to meet its own product standards. The company who prefers to make instead of buy is at risk of losing alternative sources, access to technological innovations and design flexibility.

   Related Questions in Finance Basics

  • Q : Shares Assignment Mina Patel has seen

    Assignment Mina Patel has seen attractive advertisements for Dixons Retail plc and its UK-based brands. She is also aware of the intense competition between retailers of electronic and electrical goods, at a time of global economic uncertainty. Mina has recently inherited several thousand pound

  • Q : How long do business cycles remain

    Normal 0 false false

  • Q : Clarify retained earnings and its

    Clarify retained earnings?  Describe importance of this? Retained earnings represent the sum of all the earnings available to common stockholders of a business at the time of its entire history, minus the tota

  • Q : Describe proprietorship-partnership and

    Briefly describe the terms proprietorship, partnership, and corporation.A proprietorship is a business owned by one person. Two or more people who join together to develop a business make up a partnership. It can be done on an inf

  • Q : Causes and solution to international

    causes and solutions to international bank crisis

  • Q : Governments fiscal policy options for

    Normal 0 false false

  • Q : Advantages and disadvantages of working

    Describe the advantages and disadvantages of the aggressive working capital financing approach? An aggressive working capital financing approach generally results in a lower cost of funds for a firm however a higher level of risk.

  • Q : Recognizes and state the significance

    Normal 0 false false

  • Q : Four-Tranche Sequential-Pay Structure

    1. How would you fund the tranche Z of the example in the securitization manual? 2. What reinvestment rate from the excess spread will guarantee that there will be sufficient money to pay0ff creditors of tranche Z? 3. When tranche Z creditors will get

  • Q : Describe advantages and the

    Describe advantages and the disadvantages of new stock issue? A new stock issue increase funds and decreases the riskiness of the firm. This also tends to send a negative signal to the market as many investors believe a company would just sell