If a Company Decides to Outsource and Then Has Freed

question 141

Multiple Choice

If a company decides to outsource and then has freed capacity, the decision on what to do with that freed capacity would be based upon

• A) fixed cost allocation.
• B) unavoidable fixed costs.
• C) opportunity costs.
• D) full product cost.

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Definitions:

Organizational Buying Objective

The goals or aims that guide purchasing decisions within a company, often focused on optimizing cost, quality, and supply chain efficiency.

Business Firms

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits from their operations.

Profitability

The financial viability characterized by the ability to generate profits over time.

Women-owned Suppliers

Businesses that are at least 51% owned, operated, and controlled by one or more women, playing a crucial role in diversifying the supply chain.