Managing Director of XYZ Company says that we do in-house production of four products i.e. A, B, C, and D. But here the costing increase M.D. said.
Now he says that if we outsource these products then we can save the cost. But, here we cannot accept it easily and need proof for the same. So, here we need to structure the information and then have to compare it.
Other thing M.D. says that we have just identified variable cost, but there is fixed cost also which will be evenly spread to all the products. Means all the products will cost the same. Here actually we need to apply Scepticism Skill.
You need to question and challenge the M.D. that how it is possible. We need to ask proof for the same, but in professional manner.