In General, a Company Should Outsource If the Cost to Buy

question 54

Multiple Choice

In general, a company should outsource if the cost to buy is:

• A) Less than the sum of variable costs and fixed costs
• B) Less than the relevant variable costs
• C) Greater than or equal to (variable costs + relevant fixed costs - opportunity costs)
• D) Less than or equal to (variable costs + relevant fixed costs - opportunity costs)

---

Definitions:

Sediment

Particles of organic or inorganic matter that settle in place, often in bodies of water, eventually forming sedimentary rock.

Clay And Silt

Fine-grained natural earth materials, which when combined, form a part of sedimentary deposits, with distinct physical properties related to their particle size.

Oxbow Lake

An isolated, curved lake formed when a cutoff meander is filled with water.

Sinuosity

The measure of how much a river or stream meanders, calculated as the channel length divided by the straight-line distance downstream.