Which of the Following Best Describes Subcontracting

question 75

Multiple Choice

Which of the following best describes subcontracting?

• A) provides additional output capacity during periods of high demand
• B) it is a strategic decision
• C) cost per unit is less for subcontracting
• D) used when a company has no in-house capability
• E) it defines the company's core business

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Definitions:

Premium Amortization

The process of gradually expensing the premium paid above a bond's face value over the remaining life of the bond.

Effective-interest Method

The effective-interest method is a technique used in amortizing the discount or premium on bonds payable, where the interest expense recorded over time corresponds to the bond's carrying value.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, recognized on the income statement.

Anthropocentric

Pertaining to the belief that human beings are the central or most significant species on the planet, often regarding nature and environment from a human-centered perspective.