Make or Buy Decisions | Financial Advantage or Disadvantage | Example

In this lesson, we go through a Make or Buy Decision Example. We calculate the Financial Advantage or Disadvantage of accepting an outside supplier's offer. We explain the relevant costs including opportunity cost.
Relevant Costs | Explained with Examples | Introduction: • Relevant Costs | Expla...
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[@ernienawelwa9325]

Your tutorials are are so helpful sir

[@josephmanu5664]

that was understandable.....THANK YOU

[@melodymakau3529]

This has helped me. Thankyou

[@VATSINIAINAtatamo]

thank you so muccchhhh

[@danieloyeleye3459]

I think that if we are calculating the relevant cost for the outside supplier the 70,000 should be deducted from the 320,000... if take the outside suppliers offer, we get 70,000.... please could you explain this part a little more...

[@masengenisibongilerosemary6964]

Please explain Counttuts I also don't understand

[@Lovesss_28]

Would you account for depreciation or that’s irrelevant?

[@gift827]

Depreciation is irrelevant.

[@TererFrancis]

well gotten

[@AbdulazeezMuhammed-xm8tw]

How do we get the R15000?

[@AneleDube-b7y]

Sir if we make the product we will only be incurring fixed costs of R60000. So why take 1/3 of R60000 to be the fixed costs we will pay if we make the product instead of R60000?

[@AbdulazeezMuhammed-xm8tw]

How do we get the R15000

[@snaps_262]

i don't know if there is something i missed but.. if we accept the offer won't we be also receiving the R70000 for rent?

[@nonjabulonzimande1638]

i thought so too