When Managers Determine Whether It Is Less Expensive to Buy

question 26

Multiple Choice

When managers determine whether it is less expensive to buy products from a vendor or make them in house they are performing ________.

• A) Cost-benefit analysis
• B) Supply-chain analysis
• C) Value-chain analysis
• D) Research and development

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Definitions:

Break-Even Sales

The amount of revenue required to cover all fixed and variable costs, resulting in a net income of zero.

Operating Period

The time frame during which a business conducts its regular operational activities, usually a fiscal year or quarter.

Divisions

Separate parts or sections of a company, each responsible for certain activities or operations.

Break-Even Sales

The amount of revenue required to cover all fixed and variable expenses, resulting in neither profit nor loss.