Explain to a friend what you have learned about documentation and evidence. Be sure to detail why we need it and how we get it. Do not get too technical; they do not understand accounting or auditing. You may use a combination of formal terms, examples, and resources to support your answer.

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.