CONCEPT PRACTICE
Procurement alternatives
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Determine the least expensive trial-production development method. Creation takes 6 months at 6,000 dollars per person-month; modification takes 3 months and evaluation 2 months, each at 10,000 dollars per person-month. The original table lists purchase cost, outsourcing cost and persons per month for creation, modification and evaluation. All table rows are transcribed with their respective choices. Other costs are excluded.
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Source: 2026S_FE-A_Questions.pdf, PDF page 19. ID: 2026S-A-Q052. Explanation written for this textbook.