Question
33. When a company is outsourcing a process, resources are freed up so they can be put to another use. The alternative use is considered
33. When a company is outsourcing a process, resources are freed up so they can be put to another use. The alternative use is considered to be
A. a fixed cost
B. a committed cost
C. an opportunity cost
D. a sunk cost
32. A common mistake managers make in deciding to close a division is allowing
A. allocated fixed costs to influence the decision.
B. avoidable costs to influence the decision.
C. customer needs and desires to influence the decision.
D. qualitative issues to influence the decision.
31. Costs that has been incurred in the past is referred to as
A. avoidable costs
B. opportunity costs
C. relevant costs
D. sunk costs
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