Which of the Following Statements Is Incorrect

question 122

Multiple Choice

Which of the following statements is incorrect?

• A) An outsourcing decision typically affects only product-level costs.
• B) Accepting a special order will involve incurring unit-level costs.
• C) Eliminating a business segment often allows a company to avoid some facility-level costs.
• D) Facility-level costs generally are not relevant in special order decisions.

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Definitions:

Operations Activities

Tasks and processes involved in the production, management, and delivery of goods and services in a business.

Production

the process of creating goods or services by combining various resources like labor, materials, and technology, intended for sale or use.

Critical Path

is the sequence of stages determining the minimum time needed to complete a project, highlighting the most important tasks that directly affect the project completion date.

PERT Diagram

A project management tool used to schedule, organize, and coordinate tasks within a project, visualizing the project’s timeline and critical path.