Harrison Is a Manager at Delta Inc

question 45

Multiple Choice

Harrison is a manager at Delta Inc., a computer manufacturing company. He believes that Delta should produce all computer components in-house rather than buying them elsewhere. Which of the following is a true statement that supports his belief?

• A) Making components in-house can help a firm maintain control of sensitive knowledge.
• B) Producing components in-house can help a firm develop production expertise with minimum time and effort.
• C) Producing components in-house can make it easy for a firm to achieve economies of scale.
• D) In-house producers have the same incentives as external suppliers to produce high-quality products.

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Definitions:

Approximate Height

A measurement that provides an educated guess or estimation of an object or person's height, not necessarily based on precise measurements.

Gross Profit Margin

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; it measures a company’s production efficiency.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.

Product Costs

The total costs directly tied to the creation of a product, including raw materials, labor, and overhead expenses.