Gnome Company Is Trying to Decide Whether to Continue to Manufacture

question 160

Multiple Choice

Gnome Company is trying to decide whether to continue to manufacture a particular component or to buy the component from a supplier. Which of the following is relevant to this decision?

• A)the potential uses of the facilities that are currently used to manufacture the component
• B)the insurance on the manufacturing facility which will continue regardless of the decision
• C)allocated corporate fixed costs which would have to be allocated to other products if the component is no longer manufactured
• D)the cost of the equipment that is currently being used to manufacture the component

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Definitions:

Virtual Teams

Teams that operate and collaborate primarily through electronic communications technology.

Task Forces

Temporary groups formed to achieve a specific goal or to solve a particular problem within an organization.

Shared Mental Models

A cognitive framework shared among members of a team or organization that helps in understanding, interpreting, and predicting the actions of others within that group.

Cross-functional Teams

Cross-functional teams are groups composed of members from different departments or areas of expertise, working together towards a common goal.