Which of the Following Would NOT Be a Step in Conducting

question 3

Multiple Choice

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

• A)Assessing quantitative costs of outsourcing
• B)Evaluating new suppliers who could make the SKU
• C)Assessing the relationship of the product to the firm's core competencies
• D)Conducting a detailed internal audit of purchasing practices

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Definitions:

Step-Up Method

An allocation method used in cost accounting to allocate support department costs to other departments incrementally.

Inter-Support-Department Services

The exchange of support or administrative services between different departments within the same organization, often allocated as part of overhead costs.

Joint Costs

Costs that are incurred in producing multiple products up until the split-off point where the products become distinguishable.

Split-Off Point

The stage in a production process where multiple products become separately identifiable, and cost allocation becomes necessary.