When Selecting Activities to Outsource,firms Should Select Activities That

question 14

Multiple Choice

When selecting activities to outsource,firms should select activities that:

• A) capture and create value.
• B) neutralize external threats.
• C) are critical to their success.
• D) are nonstrategic capabilities.

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life.

Straight-Line Method

A method of calculating depreciation of an asset evenly across its useful life, where the same amount is expensed each year.

Accumulated Depreciation

The cumulative total of depreciation charges applied to a fixed asset from the time of its acquisition.

Machinery

Machines or automated systems used in the manufacturing process or to carry out various tasks. Machinery is considered a long-term, fixed asset in accounting.