What Is the Most Likely Action to Be Taken by a Company

question 142

Multiple Choice

What is the most likely action to be taken by a company when a support department is NOT as cost effective as an outside source?

• A)The company may force managers to use the internal support department.
• B)The company may force managers to use an external source for the service.
• C)The company may elect not to supply the service internally.
• D)all of the above

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Definitions:

Direct Labor-Hours

A quantification of the overall hours dedicated to the direct production of goods.

Unadjusted Cost

Refers to the original cost of an asset or expenditure without any adjustments for depreciation, taxation, or any other modifications.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Finished Goods Inventory

Finished goods available for sale but still held within the company's inventory.