Which of the Following Would Not Be Relevant in an Outsourcing

question 106

Multiple Choice

Which of the following would not be relevant in an outsourcing decision?

• A) Avoidable fixed costs
• B) Opportunity costs
• C) Unavoidable fixed costs
• D) Avoidable variable costs

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Definitions:

Revenues

The total amount of income generated by the sale of goods or services related to a company's primary operations.

FIFO

First-In, First-Out, an inventory valuation method where goods purchased or produced first are sold, used, or disposed of first.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.