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

MCQ 731: 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

MCQ 732: 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

MCQ 733: 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

MCQ 734: 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

MCQ 735: 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