In General,when Substantial Investments in Specialized Assets Are Required to Manufacture

question 63

Multiple Choice

In general,when substantial investments in specialized assets are required to manufacture a component,a firm will:

• A) re-engineer the component to reduce costs
• B) find a alternative method of manufacturing the component
• C) contract out the production of the component rather than make it internally
• D) discontinue making the product that the component goes into
• E) prefer to make the component internally rather than contract it out to a supplier

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Definitions:

Temperature

A measure of the thermal energy of a system, reflecting how hot or cold an object is.

Precipitation

Any form of water, liquid or solid (rain, snow, sleet, hail), that falls from the atmosphere and reaches the ground.

Desert Animals

Fauna specially adapted to survive in desert climates, often featuring adaptations such as water conservation and temperature regulation.

Estivate

A period of dormancy or inactivity observed in some animals during hot or dry seasons to conserve energy.