Which of the Following Statements Is True of Outsourcing Decisions

question 27

Multiple Choice

Which of the following statements is true of outsourcing decisions

• A) Break-even analysis can be used to provide insight into outsourcing decisions.
• B) The simplest outsourcing decision is a single supplier versus multiple suppliers.
• C) If a company decides to make a part in-house, it does not incur any fixed costs.
• D) If a company outsources its work to external supplier, the variable cost per unit will be low.

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Definitions:

Buying Decision Process

The series of steps a consumer goes through, from recognizing a need to the actual purchase decision.

Purchase Intentions

The probability or inclination of customers to purchase a product or service soon.

Selling Technique

Strategies or methods used to persuade customers to purchase a product or service.

Buying Decision Process

Refers to the stages consumers go through before making a purchase, including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.