Choosing to Outsource a Component of a Product or Manufacture

question 123

Multiple Choice

Choosing to outsource a component of a product or manufacture it internally is an example of a(n) :

• A) Opportunity cost.
• B) Sunk cost.
• C) Out-of-pocket cost.
• D) Period cost.
• E) Fixed cost.

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Definitions:

Bake Sale

Bake Sale is a fundraising activity where baked goods such as cookies, cakes, and bread are sold, often organized by schools, churches, or non-profit organizations to raise money for various causes.

Reactance

A psychological response where an individual exhibits resistance or opposition to perceived attempts to limit their freedom or autonomy.

Door-In-The-Face

A persuasion technique involving making a large request that is expected to be refused so that a smaller request made subsequently seems more reasonable.

New Coke

A reformulated version of Coca-Cola introduced in 1985, which was met with consumer backlash leading to the return of the original formula.