Which of the Following Statements Is True of Outsourcing Decisions

question 27

Multiple Choice

Which of the following statements is true of outsourcing decisions

• A) Break-even analysis can be used to provide insight into outsourcing decisions.
• B) The simplest outsourcing decision is a single supplier versus multiple suppliers.
• C) If a company decides to make a part in-house, it does not incur any fixed costs.
• D) If a company outsources its work to external supplier, the variable cost per unit will be low.

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Definitions:

Personal Observation

Direct witnessing or monitoring of events, behaviors, or activities, used as a basis for drawing conclusions or gathering data.

Online Search

The process of using the internet to locate information, resources, or data through search engines or specific websites.

Gathering Information

The collection of data, facts, and insights from various sources to support decision-making, analysis, or research.

Primary Research

Original research conducted first-hand to collect new data or information directly related to a specific question or issue.