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Which of the following is correct when making a decision about outsourcing? OA.

ID: 2437782 • Letter: W

Question

Which of the following is correct when making a decision about outsourcing? OA. the dherential costs of makrgte produc exceedte diferenial costs of outeurengthe product shold be outsourced O B. there are no additional unavoidable foxed costs, the product should be outsourced O C. t the differential costs of making the product exceed the differential costs of outsourcing, the product should notbe outsouroed O D. Wthe unavoidable Sxed costs of making the product exceed the unavoidable fxed costs of outsourcing. the product should nor be outsourced 4 shift

Explanation / Answer

If the cost of making the product exceeds the cost of outsourcing then we should outsource as it will be more profitable

SO correct answer is A

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