Which of the Following Is NOT One of the Key

question 78

Multiple Choice

Which of the following is NOT one of the key benefits of employing an outsourcing strategy?

• A) It allows a company to concentrate on its core business, leverage its key resources and core competencies, and do even better what it already does best.
• B) It can hollow out a firm's own capabilities and cause it to lose touch with activities and expertise that contribute fundamentally to the firm's competitiveness and market success.
• C) It reduces the company's risk exposure to changing technology and/or buyer preferences.
• D) It improves organizational flexibility and speeds time to market.
• E) It involves an activity that can be performed better or more cheaply by outside specialists.

Understand how contribution margin analysis and cost allocation affect pricing and production decisions.

Understand the basic concept of linear programming and the significance of the feasible solution area.

Identify the limitations and applicabilities of linear programming in decision-making processes.

Differentiate between cost-based pricing and value-based pricing strategies.

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Definitions:

Byproduct

A secondary or incidental product resulting from a manufacturing process, chemical reaction, or biological activity.

Glucose

A hexose aldehyde sugar that is central to many metabolic processes

Oxygen

A chemical element with the symbol O, necessary for the respiration of most living organisms and for combustion processes.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, absorbed by plants in photosynthesis.