Which of the Following Statements Is True When a Company

question 11

Multiple Choice

Which of the following statements is true when a company is considering whether to make or buy a component of a product that it currently manufactures?

• A) If none of the current fixed overhead is avoidable when outsourcing, the product should be made internally.
• B) If the current fixed overhead is avoidable when outsourcing, the product should be outsourced.
• C) If the relevant costs to make internally are greater than the relevant costs of outsourcing, the product should be outsourced.
• D) If the cost of outsourcing is greater than the direct materials cost of making internally, the product should continue to be made internally.

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Definitions:

Behavior Therapies

A range of therapies that treat mental health disorders by modifying dysfunctional behaviors through reinforcement strategies.

Effectiveness

The degree to which a specific intervention, process, or activity achieves its intended outcome or results.

Family Therapist

A mental health professional specializing in treating psychological disorders within the context of family interactions and dynamics.

Alcohol Use Disorder

A medical condition characterized by an impaired ability to stop or control alcohol use despite negative social, occupational, or health consequences.