Which of the Following Factors Should Be Considered When a Project

question 41

Multiple Choice

Which of the following factors should be considered when a project team evaluates a "make or buy" decision to procure services?

• A) prevailing public opinion regarding the economic impact of outsourcing
• B) only the direct costs associated with the decision, excluding consideration of indirect costs
• C) advantages and disadvantages of outsourcing in terms of performance control
• D) project manager's preference

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Definitions:

Marginal Utility

The change in satisfaction or utility an individual gains from consuming an additional unit of a good or service.

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Utility Functions

Mathematical representations that indicate the level of satisfaction or utility an individual receives from consuming different bundles of goods and services.

Clothing

Textile-based materials worn on the body, primarily used for protection, modesty, and decoration.