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...