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20. The act of using another company to provide goods or services that your company requires is called: A allocating B. outsourcing C. segmenting D.
20. The act of using another company to provide goods or services that your company requires is called: A allocating B. outsourcing C. segmenting D. leasing 21 Which of the following is a disadvantage of outsourcing? A. freeing up capacity B. freeing up capital C. transferring production and technology risks D. limiting ability to upsize or downsize production 22. Which of the following is not a qualitative decision that should be considered in an outsourcing decision? A. employee morale B. product quality C. relevant costs D. company reputation 23. Which of the following is one of the two approaches used to analyze data in the decision to keep or discontinue a segment? A. comparing contribution margins and fixed costs B. comparing contribution margins and variable costs C. comparing gross margin and variable costs D. comparing total contribution margin under each alternative 24. When should a segment be dropped? A. only when the decrease in total contribution margin is less than the decrease in fixed cost B. only when the decrease in total contribution margin is equal to fixed cost C. only when the increase in total contribution margin is more than the decrease in foxed cost D. only when the decrease in total contribution margin is less than the decrease in variable cost 25. When operating in a constrained environment, which products should be produced? A. products with the highest contribution margin per unit B. products with the highest contribution margin per unit of the constrained process C. products with the highest selling price D. products with the lowest allocated joint cost
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