can you make a short comment on this post? As we have discussed in previous chapters the total product costs are made up of direct material, direct labor and manufacturing overhead. When making decisions as to whether we should outsource the production of a product we should consider all types of variable costs and along with fixed costs. This forms part of total costs which companies will have if they outsource the product. In most cases companies also get their product from other manufacturing companies so it is very important to take all this into consideration. Due to high demand all the bigger companies tend to make alliances with other investors and while they may make a majority of the product some of the parts are still outsourced. In essence, yes we do consider the cost behavior while analyzing the outsource of a product. An example of this is Nike which is a footwear manufacturing company they outsource their product to multiple overseas manufacturing plants including China, Vietnam, Indonesia. While they outsource in other countries there are also multiple major suppliers including Pou chen, PT pan Brothers, Delta, Eagle Nice and many more