Which of the Following Is Correct When Making a Decision

question 17

Multiple Choice

Which of the following is correct when making a decision about outsourcing?

• A) If the differential costs of making the product exceed the differential costs of outsourcing, the product should be outsourced.
• B) If the unavoidable fixed costs of making the product exceed the unavoidable fixed costs of outsourcing, the product should not be outsourced.
• C) If the differential costs of making the product exceed the differential costs of outsourcing, the product should not be outsourced.
• D) If there are no additional unavoidable fixed costs, the product should be outsourced.

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Definitions:

Ultra-Low Prices

Pricing strategy that involves setting the price of products or services at a very low level to attract customers.

Online Retailing

The selling of goods and services through the internet, allowing customers to shop from anywhere at any time.

Nonstore Retailing

The selling of goods and services outside the confines of a traditional retail establishment, such as online shopping, catalog sales, and vending machines.

Online Shopping

The act of purchasing products or services over the Internet, typically through websites or applications.