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:

Protein Synthesis

The biological process through which cells build or synthesize new proteins from amino acids.

Nonmembranous Organelles

Organelles in cells that are not enclosed within membranes, such as ribosomes and centrioles.

Surface Area

The total area that the surface of an object occupies, often relevant in processes such as absorption and evaporation.

Microvilli

Tiny projections found on the surface of some cells that increase the surface area for absorption.