Which of the Following Is an Opportunity Cost That Should

question 37

Multiple Choice

Which of the following is an opportunity cost that should be considered in an outsourcing decision?

• A) Avoidable fixed costs
• B) Benefits from alternate uses of released capacity
• C) Unavoidable fixed costs
• D) Employee morale

---

Definitions:

Organization Expense

Costs associated with forming a corporation or business entity, such as legal fees, filing fees, and promotional expenses.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Paid-in Capital

Funds received by a company in exchange for shares of its stock, representing the capital contributed by shareholders beyond the par value of the shares.

Organization Expense

Costs associated with the formation of a corporation or business, such as legal fees, registration fees, and initial promotional activities.