You work as a project manager for BlueWell Inc. Which of the following techniques will you use to determine whether particular work can best be accomplished by the project team or must be purchased…

Question

Options

• AContract Types
• BExpert Judgment
• CProcurement Negotiations
• DMake-or-Buy Analysis

• A
  3% (1)
• B
  3% (1)
• C
  6% (2)
• D
  89% (31)

Explanation

A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs. Answer option B is incorrect. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess. Answer option A is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller. Answer option C is incorrect. Negotiations clarify the structure, requirements and other terms of the purchase so that the mutual agreement can be reached prior to signing the contracts.

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