Under Which of the Following Conditions Does the Resource Dependence

question 123

Multiple Choice

Under which of the following conditions does the resource dependence of an organization increase?

• A)As needed resources become scarcer
• B)As outsiders have less control over needed resources
• C)As more substitutes for a particular type of resource are available
• D)As more companies can provide the necessary key resources
• E)As competitor firms become weaker in your market

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Definitions:

Direct Materials

Raw materials that can be directly traced to the production process of a specific good or service.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to a specific product, such as utilities, rent, and management salaries.

Sunk Costs

Sunk costs are past expenditures that cannot be recovered and should not affect future business decisions since they remain the same regardless of the outcome.

Cost of Goods Manufactured

The total cost incurred to manufacture products, including materials, labor, and overhead, during a specific period.