Costing: what do u mean by non cost factors

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Krishna seva das

Krishna seva das (Querist)

19 October 2013 costing: what do u mean by non cost factors...???

@VaibhavJ

@VaibhavJ (Expert)

19 October 2013 Hi

Non-cost factors in decisions:

1. Possible use of released production capacity and facility as a result of buying instead of makings.

2. Sources of supply should be reliable and they are capable of meeting un-interruptedly the requirement of the concern.

3. Assurance about the quality of goods supplied by outside supplier.

4. Reasonable certainty from the side of suppliers about, meeting the delivery dates.

5. The decision of buying the product /component from outside suppliers should be discouraged, if the technical know how used is highly secretive.

6. The decision of buying from outside sources should not result in the laying off of workers and create industrial relation problems. Infect, on buying from outside their sources freed should be better utilized elsewhere in the concern.

7. The design of manufacturing product/ component should not adversely affect the concern's relationship with suppliers.

8. Ensure that more than one supplier of product/ component is available to reduce the risk of outside buying.

9. In case the necessary technical expertise is not available internally then it is better to buy the requirements from outside.

Thanks//VaibhavJ

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