Arvid's Moving and Storage Has a Fleet of 37 Trucks

question 38

Multiple Choice

Arvid's Moving and Storage has a fleet of 37 trucks.Arvid currently has two of his own mechanics who perform all of the routine maintenance as well as other minor repairs on all of the trucks.However,he wonders whether outsourcing this work would be more cost-effective and asks his accountant to work with two managers to analyze such a change.What type of analysis would the accountant be most likely to use?

• A)ratio analysis
• B)horizontal analysis
• C)incremental analysis
• D)CPM analysis

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Definitions:

Nominal Group Technique

A structured method for group brainstorming that encourages contributions from everyone.

Programmed Decision

A decision made in response to recurring organizational problems that involve predictable, routine procedures.

Probation

A trial period during which a new employee's performance and suitability for a position are evaluated by their employer, or a judicial sentence that allows an offender to remain in the community under supervision instead of serving time in prison.

Reorder Inventory

The process of restocking products or materials in business operations to maintain an adequate supply level.