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Cost to buy & Cost to make

Cost to buy (CTB) and Cost to make (CTM) (AO3, AO4)A make or buy decision involves managers choosing whether to manufacture a product in-house (make) or to purchase it (buy) from a third-party subcontractor. A make or buy decision is therefore about the relative benefits or gains of insourcing compared with those of outsourcing production.In-house production enables the organization to have closer control over costs...

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