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transaction cost theory

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A theory accounting for the actual cost of outsourcing production of products or services including transaction costs, contracting costs, coordination costs, and search costs. The inclusion of all costs are considered when making a decision and not just the market prices. Essentially this theory illustrates the make versus buy decision for companies.
  • accounting

  • payment terms

  • accounting conc...

  • financial manag...

  • marginal benefi...

  • letter of credi...

  • asset

  • revenue

  • pro forma invoi...

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