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

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Afton

1 months ago

Insourcing vs. outsourcing? I say we just 'in-source' some tacos and call it a day. Who's with me?

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Stefania

10 days ago

C) Idle capacity is available.

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King

15 days ago

B) Quality control is critical.

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Arlette

24 days ago

A) Maintaining a long-run relationship with suppliers is desirable.

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Roosevelt

2 months ago

All of the answers are correct? Well, that's just a cop-out. Where's the fun in that?

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Silva

4 days ago

C) Idle capacity is available.

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Jolene

12 days ago

B) Quality control is critical.

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Chun

14 days ago

A) Maintaining a long-run relationship with suppliers is desirable.

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Mona

2 months ago

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

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Larae

2 months ago

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

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Kristel

2 months ago

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

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Johnetta

2 months 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.

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Berry

2 months ago

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

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Judy

23 days ago

B) Quality control is critical.

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Lachelle

24 days ago

A) Maintaining a long-run relationship with suppliers is desirable.

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Nu

25 days ago

B) Quality control is critical.

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Tamekia

29 days ago

A) Maintaining a long-run relationship with suppliers is desirable.

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Bobbye

2 months ago

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

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Jeanice

2 months ago

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

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Wilbert

2 months 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?

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Brinda

2 months ago

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

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