In an Outsourcing Decision, the General Rule Managers Should Follow

question 60

Multiple Choice

In an outsourcing decision, the general rule managers should follow is to:

• A) Choose the option with the lowest relevant cost
• B) Maximize the use of constrained resources
• C) Outsource if the price is greater than the sum of variable costs and fixed costs
• D) Do not outsource if the cost is less than the sum of relevant fixed costs and opportunity costs

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Definitions:

Short-lived Fashion

Trends or styles in clothing, accessories, or beauty that gain popularity quickly but also fade in relevance or desirability just as fast.

Cultural Phenomena

Aspects, patterns, or trends that are representative or characteristic of a specific culture and are widely recognized and acknowledged within that culture.

Important Characteristics

Essential or significant features that distinguish an object, individual, or concept.

Trickle-down Theory

A social and economic idea suggesting that benefits for the wealthy or innovations in high fashion, for example, will eventually pass down to the less wealthy.