Insourcing versus Outsourcing Notes Questions with Answers PDF Download – Test 147

In today's global world, an outsourcing of products or services from lower cost countries is classified as

1. differential in-sourcing
2. off-shoring
3. incremental outsourcing
4. differential outsourcing

If the target operating income is $84000 and contribution margin per unit is $600, then number of units must be sold to earn targeted operating income, will be

1. 100 units
2. 110 units
3. 120 units
4. 140 units

The decision model to calculate optimal quantity of inventory to be ordered is called

1. efficient order quantity
2. economic order quantity
3. rational order quantity
4. optimized order quantity

The third step in developing operating budget is to

1. choose the budgeting period
2. select allocation bases
3. identify variable overhead cost
4. compute the per unit rate

An estimated coefficient, which indicates the degree by which the estimated values are affected by random factors is known as

1. standard error of estimated coefficient
2. weighted error of estimated coefficient
3. average of estimated coefficient
4. variance of estimated coefficient