Expand and Contract decisions – GUFFO Answer

Solution: In this section, we are described expansion and contract decisions. Let’s check it out.

विस्तार या संकुचन निर्णय

Expansion and contract decisions

In any factory, if there is scope for expansion and there is a possibility of buying only one item on the basis of market contract, then we will see the total cost of both options. Whenever a decision is made whether the capacity should be expanded or not, then the following points should be considered:

किसी भी कारखाने में, यदि विस्तार के लिए गुंजाइश है और बाजार अनुबंध के आधार पर एक ही वस्तु खरीदने की संभावना है, तो हम दोनों विकल्पों की कुल लागत देखेंगे। जब भी कोई निर्णय किया जाता है कि क्षमता का विस्तार किया जाना चाहिए या नहीं, तो निम्नलिखित बिंदुओं पर विचार किया जाना चाहिए:

1. Additional fixed expenses will be made.
2. Possible decrease in sales price due to increase in production.
3. If demand is sufficient to absorb the increase in production.

Make Or Buy Decisions

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1 Response

  1. 2018

    […] Expand and Contract decisions IGNOU ASSIGNMENT […]

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