Roseland Company Is Trying to Decide Whether to Continue to Manufacture

question 31

Multiple Choice

Roseland Company is trying to decide whether to continue to manufacture a particular component or to buy the component from an outside supplier.Which of the following is irrelevant with respect to this decision?

• A) the quality of the component purchased from the outside supplier
• B) the outside supplier's ability to deliver the component on a timely basis
• C) the alternative uses of the facilities currently being used to manufacture the component
• D) the unavoidable fixed manufacturing costs associated with the manufacture of the component

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Definitions:

Conflict

A situation where two or more parties disagree due to opposing needs, desires, beliefs, or values, which can occur between individuals, groups, or organizations.

Ambiguity

The quality of being open to more than one interpretation, explanation, or meaning, often leading to confusion or misunderstanding.

Network Structures

Organizational designs that focus on decentralized connections between individuals or units, allowing for flexible coordination and exchange of information.

Mechanistic Organizational Structure

An organization design that is hierarchical and bureaucratic, characterized by clear, rigid departmentalization, centralized decision making, and a strict chain of command.