The Altamonte Division of Custom Industries Is in Need of a Particular

question 89

Multiple Choice

The Altamonte Division of Custom Industries is in need of a particular service. The service can be obtained from another division of Custom at "cost," with cost defined as the summation of variable cost ($9) and fixed cost ($3) . Alternatively, Altamonte can secure the service from a source external to Custom for $10. Which of the following statements is true?

• A) Altamonte should compare $10 versus $3 in deciding where to acquire the service.
• B) Altamonte should compare $10 versus $9 in deciding where to acquire the service.
• C) Altamonte should compare $10 versus $12 in deciding where to acquire the service.
• D) From Custom's perspective, the proper decision is reached by comparing $10 versus $9.
• E) Altamonte should both compare $10 versus $12 in deciding where to acquire the service and from Custom's perspective; the proper decision is reached by comparing $10 versus $9.

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Definitions:

Identical Twin

Monozygotic twins who develop from a single fertilized egg, sharing 100% of their genes.

Biological Parent

The parent who contributes the genetic material to the offspring, either through natural conception or genetic contribution in assisted reproduction.

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A complex, chronic mental health disorder characterized by disturbances in thought, perception, emotions, and behavior.

Hypochondriasis

A psychological disorder characterized by excessive preoccupation with the fear of having a serious disease, despite medical reassurance otherwise.