Abstract
There has been little recent empirical research which has examined the application of costs in make-or-buy decisions. This paper presents the results of a questionnaire survey with 256 British management accountants and interviews with 55 of them that gather evidence about the application of costs in make-or-buy decisions. The results of the questionnaire show that, in general, direct, manufacturing or total costs or some combination thereof are used in make-or-buy decisions. The interviews showed that in some cases that costs may be used inappropriately when the costs include allocated and assigned overheads and this might lead to sub-optimal decisions.
Original language | English |
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Pages (from-to) | 794-800 |
Number of pages | 7 |
Journal | International Journal of Management |
Volume | 23 |
Issue number | 4 |
Publication status | Published - Dec 2006 |