Analysis
Relevant Costing for a Sustainable Fashion Brand's Make-or-Buy Decision
Overview
What this challenge is about.
You are a management accountant at EcoThreads. The company currently produces 10,000 T-shirts/month in-house with fixed costs of £50K (including £20K unavoidable) and variable costs of £8/unit. A Portuguese supplier offers £12/unit. Additionally, outsourcing would free up capacity for a new product line (estimated contribution £15K/month). Prepare a relevant cost analysis, consider non-financial factors (quality, ethics, lead time), and present a recommendation to the board.
The Brief
What you'll do, and what you'll demonstrate.
Should EcoThreads outsource T-shirt production or keep it in-house, considering both financial and strategic factors?
Earning criteria — what you'll demonstrate
- Identify relevant and irrelevant costs in a make-or-buy decision
- Apply opportunity cost concepts (e.g., freed capacity)
- Integrate qualitative factors into a quantitative analysis
- Formulate a data-driven recommendation for strategic decisions
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.
Career mappings coming soon.