Which of the Following Is an Opportunity Cost That Should

question 37

Multiple Choice

Which of the following is an opportunity cost that should be considered in an outsourcing decision?

• A) Avoidable fixed costs
• B) Benefits from alternate uses of released capacity
• C) Unavoidable fixed costs
• D) Employee morale

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Definitions:

Public Relations

A strategic communication process that builds mutually beneficial relationships between organizations and their publics.

Promotional Activities

Marketing efforts designed to inform, persuade, or remind customers and potential buyers about a product or service to increase sales.

Goodwill

The intangible asset that allows businesses to earn a higher return than a comparable business with the same tangible assets might generate.

Price Setting

The process of determining the selling price of a product or service, based on costs, market demand, competition, and profitability goals.