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PM
Syllabus C. Decision-Making Techniques

Syllabus C5. Make-Or-Buy And Other Short-Term Decisions 6 / 7

a) Explain the issues surrounding make vs. buy and outsourcing decisions.
b) Calculate and compare “make” costs with “buy-in” costs.
c) Compare in-house costs and outsource costs of completing tasks and consider other issues surrounding this decision.
d) Apply relevant costing principles in situations involving shut down, one- off contracts and the further processing of joint products.
Make-Or-Buy And Other Short-Term Decisions