_____ costs refer to the costs a firm incurs to coordinate activities between business units.
A) Franchising
B) Administrative
C) Outsourcing
D) Transaction

Question

Quizplus · Accepted Answer

Administrative costs refer to the costs a firm needs to incur to coordinate activities between its business units. These costs include communication, monitoring, planning, and decision-making expenses. Administrative costs include both financial and non-financial costs, such as time and effort spent by managers and employees in coordinating and aligning activities across the organization. Franchising refers to a business model in which a firm licenses its trademark, business model, and operating systems to independent business owners who operate the business under the franchisor's guidance. Outsourcing refers to the practice of using an external service provider to perform a business function that would otherwise be done in-house. Transaction costs refer to the costs associated with making economic transactions, such as searching for information, bargaining, and enforcing contracts.

_____ Costs Refer to the Costs a Firm Incurs to Coordinate