_______ Occurs When an Organization Transfers Some Aspect of Their

question 58

Multiple Choice

_______ occurs when an organization transfers some aspect of their business to a third party.

• A) Automation
• B) Outsourcing
• C) Telecommuting
• D) Green computing

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Definitions:

Fixed Cost

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance premiums, remaining constant regardless of business activity levels.

Production Level

The quantity of items manufactured or produced in a given period, impacting costs, inventory, and capacity planning.

Step-Wise Variable Cost

A cost that remains fixed within a certain level of activity but will jump to a higher amount at a certain point due to increased activity.

Variable Costs

Costs that change in proportion to the level of activity or production volume.