Gnome Company Is Deciding Whether to Continue to Manufacture a Component

question 44

Multiple Choice

Gnome Company is deciding whether to continue to manufacture a 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 that will continue regardless of the decision
• C) fixed costs that do not differ between the alternatives
• D) the cost of the equipment that is currently being used to manufacture the component

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Definitions:

Natural Selection

The process by which organisms that are better adapted to their environment tend to survive and produce more offspring.

Directly

in a straightforward or immediate manner.

Populations

Groups of individuals belonging to the same species that live in the same geographical area and have the capability of interbreeding.

Clumped Dispersion

A distribution pattern of organisms within a population where individuals are found in tight groups, influenced by social behavior or resource availability.