Which of the Following Statements Is Incorrect

question 122

Multiple Choice

Which of the following statements is incorrect?

• A) An outsourcing decision typically affects only product-level costs.
• B) Accepting a special order will involve incurring unit-level costs.
• C) Eliminating a business segment often allows a company to avoid some facility-level costs.
• D) Facility-level costs generally are not relevant in special order decisions.

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Definitions:

Standard Oil

An American oil producing, transporting, refining, and marketing company established by John D. Rockefeller and partners in the 19th century, which became a highly influential and controversial monopoly.

Antitrust Policy

A set of laws and regulations aimed at promoting competition and preventing monopolies and unethical business practices.

Department of Justice

A U.S. government's federal department tasked with law enforcement and the management of justice.

Mergers

The process by which two or more companies combine operations, often to increase competitiveness or to expand market share.