IMANET Exam CMA Topic 5 Question 80 Discussion

Actual exam question for IMANET's CMA exam

Question #: 80
Topic #: 5

[All CMA Questions]

Which of the following qualitative factors favors the buy choice in an insourcing vs. outsourcing decision?

AMaintaining a long-run relationship with suppliers is desirable.

BQuality control is critical.

CIdle capacity is available.

DAll of the answers are correct.

Show Suggested Answer

Suggested Answer: A

The relevant after-tax cash inflow consists of the proceeds on the disposal ($8.000) plus the tax benefit ($1,600).

by Chauncey at Jan 28, 2024, 12:08 PM

Limited Time Offer

25%

Off

Get Premium CMA Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Mona

6 days ago

But what about A) Maintaining a long-run relationship with suppliers? That could also be a factor favoring the buy choice.

upvoted 0 times

...

Larae

7 days ago

I agree with Kristel, having control over quality is important in insourcing vs. outsourcing decisions.

upvoted 0 times

...

Kristel

8 days ago

I think the answer is B) Quality control is critical.

upvoted 0 times

...

Johnetta

9 days ago

I think D) All of the answers are correct. Maintaining a long-run relationship with suppliers and having idle capacity available are also important factors.

upvoted 0 times

...

Berry

10 days ago

Idle capacity? More like 'Idle away the day' capacity, am I right? But seriously, that's a great point for insourcing.

upvoted 0 times

...

Bobbye

10 days ago

I agree with Brinda. Quality control is definitely important in this decision.

upvoted 0 times

...

Jeanice

12 days ago

Quality control is super important, especially in sensitive industries. Outsourcing could be a risky move there.

upvoted 0 times

...

Wilbert

13 days ago

Maintaining a long-run relationship with suppliers is definitely a factor that favors insourcing. You don't want to lose that personal touch, you know?

upvoted 0 times

...

Brinda

17 days ago

I think the answer is B) Quality control is critical.

upvoted 0 times

...