A Decision Whether to Continue to Make a Product or Buy

question 173

True/False

A decision whether to continue to make a product or buy it externally depends on the external price and the amount of variable and fixed costs that can be eliminated assuming no alternative uses of resources.

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Definitions:

Osmotic Pressure

The pressure required to stop osmosis, a process by which solvent molecules move through a semipermeable membrane from a region of lower solute concentration to higher concentration.

Concentration

The amount of a substance in a given volume of solution or mixture or in a particular volume of space.

Solution

Homogeneous mixture formed when a solute is dissolved in a solvent.

Selectively Permeable

Describes membranes that allow certain substances to pass through while blocking others, crucial for cell function and homeostasis.