Which of the following is an opportunity cost that should be considered in an outsourcing decision?
A) Staff morale
B) Benefits from alternate uses of released capacity
C) Unavoidable fixed costs
D) Taxation implications of the decision

Question

Quizplus · Accepted Answer

Benefits from alternate uses of released capacity represent an opportunity cost because they reflect the value of the best alternative use of resources that a company gives up by making a decision to outsource.

Which of the Following Is an Opportunity Cost That Should