Which of the Following Is the Primary Reason Why Companies

question 103

Multiple Choice

Which of the following is the primary reason why companies outsource?

• A)Tap outside sources of expertise.
• B)Concentrate resources on core business.
• C)Reduce headcount and related expenses.
• D)Better manage the costs of internal processes.

Understand the assumptions underlying CVP analysis and their implications.

Apply sensitivity analysis to assess changes in assumptions.

Understand the concept and calculation of operating leverage.

Distinguish between fixed and variable costs and their roles in CVP analysis.

---

Definitions:

Fast Mapping

A cognitive process by which children rapidly learn the meaning of a word after just a few exposures, contributing significantly to vocabulary growth.

Overextension

A language error, common in early child language acquisition, where a child applies a word too broadly to objects or actions that don't fit the word's meaning.

Pragmatics

The area of linguistics that deals with language usage in societal settings and the process by which individuals create and grasp meanings through language.

Nativist Approach

A psychological theory proposing that specific abilities or talents are innate or biologically pre-programmed from birth.