All of the Following Are Outsourcing Considerations, Except

question 211

Multiple Choice

All of the following are outsourcing considerations, except

• A)Are any fixed costs avoidable if we outsource?
• B)How do our fixed costs compare to the outsourcing cost?
• C)What could we do with the freed capacity?
• D)How do our variable costs compare to the outsourcing cost?

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Definitions:

Absolute Advantage

Refers to the capability of an entity to produce a good or service more efficiently than its competitors using the same amount of resources.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Leisure Time

Time spent not working and free from domestic or professional duties, allowing for rest, recreation, or personal activities.

Unproductive Activity

Unproductive Activity is an economic term that describes actions or work that do not contribute to the production of goods or services or generate economic value.