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9 marksCosting and Break-Even Analysis

CAPE Management of Business Unit 2 · 2016 · Paper 2 · Question 2(b)

Explain THREE factors that Edwards' Air Conditioning should consider in determining whether to make or buy the manufacturing component.

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Other parts of this question

  1. 2(a)Differentiate between 'direct costs' and 'indirect costs'.[4 marks]
  2. 2(c)Discuss THREE reasons why it is important for Edwards' Air Conditioning to keep its production cost at a manageable level.[12 marks]

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