What is NOT a valid reason for a company to choose to MAKE a product internally?

Choosing to produce a product internally is often influenced by several strategic considerations, and the correct answer highlights a factor that does not justify that decision.

In-house manufacturing can be driven by the need for high-quality production, strategic importance in relation to a firm's competitive advantage, and the ability to leverage proprietary technology, all of which can enhance a company's overall performance and market position. These factors contribute to making the internal production viable and appealing.

In contrast, lower utilization of existing equipment does not provide a valid reason for making a product internally. Typically, firms aim to maximize the usage of their resources, including equipment. If equipment is underutilized, it may be more beneficial to explore outsourcing or finding other solutions that optimize resource use, rather than committing to making a product that could lead to inefficiencies. Hence, this factor does not support the rationale behind choosing to manufacture a product internally.