Which of the Following Statements Is True When a Company

question 72

Multiple Choice

Which of the following statements is true when a company is considering whether or not to make or buy (outsource) a component of a product that it currently manufactures?

• A) If none of the current fixed overhead is avoidable when outsourcing,the product should be made internally.
• B) If the current fixed overhead is avoidable when outsourcing,the product should be outsourced.
• C) If the relevant costs to make internally are greater than the relevant costs of outsourcing,the product should be outsourced.
• D) If the cost of outsourcing is greater than the direct materials cost of making internally,the product should continue to be made internally.

---

Definitions:

Toaster Disasters

Toaster disasters refer to unfortunate or failed incidents involving toasters, typically humorous or minor accidents occurring during the use of the appliance.

Retrieval Set

A group of items that come to mind when a category is accessed, often used in the context of memory and consumer behavior.

Reliability

The reliability and steadiness of outcomes provided by an appraisal device over durations.

Valid

Refers to something that is logically sound, well-grounded, or legally acceptable.