If you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative and qualitative factors would influence your decision?
For example, McDonalds is considering (actually they already have) off-shoring their drive up window service. This means the person taking your order drive-up order is in another country. They pay minimum wages and the current minimum wage is $7.25 with very limited benefits.
The minimum wage in the Philippines is $2.00 per hour with no benefits. The connection fees are about $0.05 cents a minute.
This action would eliminate at least 3 people per day. Or one wage hour for 24 hours.
You are the Managerial Accountant. Again, what quantitative and qualitative factors would influence your decision in this scenario?