In an Outsourcing Decision, the General Rule Managers Should Follow

question 97

Multiple Choice

In an outsourcing decision, the general rule managers should follow is to:

• A) Choose the option with the lowest total cost
• B) Outsource if the price is greater than the sum of variable costs and fixed costs
• C) Do not outsource if the cost is less than the sum of relevant fixed costs and opportunity costs
• D) None of the above

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Definitions:

Fluency

The ability to express oneself easily and articulately or the smoothness of movement and operation.

Expressiveness

The ability or quality of effectively conveying thoughts, feelings, or emotions through verbal or non-verbal communication.

Convergent Thinking

A cognitive process that involves focusing on finding a single, correct solution to a problem, often through the application of logic and rules.

Divergent Thinking

is a thought process or method used to generate creative ideas by exploring many possible solutions.