Which of the Following Is Not a Qualitative Issue That

question 45

Multiple Choice

Which of the following is not a qualitative issue that must be considered before reaching a decision to outsource?

• A)Quality of the outsourced product
• B)Number of employees terminated
• C)Ability to bring outsourced item back in house
• D)Speed of the outsourced product

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or activity, such as raw materials and direct labor.

Break Even Point

The financial state where total revenues and total expenses are equal, resulting in no net profit or loss for the business.

CVP Graph

A graphical representation used in Cost Volume Profit analysis to depict relationships among cost, volume, and profit, showcasing how changes in sales volume will affect profits.

Total Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.