Insourcing versus Outsourcing Multiple Choice Questions (MCQ) PDF Download

MCQ 1: The decisions made by team of individuals or single person, whether to outsource the products or in-source are classified as

1. demand or supply decisions
2. make or buy decisions
3. relevant or irrelevant decision
4. idle or busy decisions

MCQ 2: The forgone contribution of resources, into the revenues because of not using the resources, in next best use is classified as

1. in-source cost
2. opportunity cost
3. offshore cost
4. outsource cost

MCQ 3: The difference of cost, which occurs while considering the alternatives can be classified as

1. dependent cost
2. independent cost
3. incremental cost
4. differential cost

MCQ 4: The costs such as book value of old machines are $25000 can be a classified as an example of

1. salvages
2. relevant
3. irrelevant
4. depreciated cost

MCQ 5: The production of goods or services that can be bought from outside suppliers is classified as

1. idle sourcing
2. sunk sourcing
3. outsourcing
4. in-sourcing