Factors Used to Decide Whether to Outsource a Part Include

question 161

Multiple Choice

Factors used to decide whether to outsource a part include ________.

• A) the supplier's cost of direct materials
• B) if the supplier is reliable
• C) the original cost of equipment currently used for production of that part
• D) past design costs used to develop the current composition of the part

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Definitions:

Term Deposit

A banking term for a fixed-term investment held at a financial institution where money is locked in for a certain period of time, earning a specified interest rate.

Simple Interest

Interest calculated only on the principal amount, or original sum borrowed or invested, without compounding.

Maturity Value

The total amount payable to an investor at the end of a fixed-term investment, including both principal and interest.

Term Deposit

A bank deposit that has a fixed term and typically earns higher interest than regular savings accounts.