Extra monitoring and transaction costs may offset cost savings by offshoring.
True
False
ANSWER: True
Offshoring may seem lucrative in the initial stages, but after the initial honeymoon period is over, something called as offshore fatigue starts to set in. The transaction costs and extra monitoring are referred to as offshore fatigue. This may offset the benefits in terms of cost savings. And eventually offshoring may not turn out to be as lucrative as it seemed initially.
Extra monitoring and transaction costs may offset cost savings by offshoring. True False
Opportunism fosters transaction costs. A. True B. False
. “When transaction costs are zero, property rights do not affect income distribution.” True or False? Discuss carefully.
Total cost equals the sum of fixed costs and average costs. True False
true or false: even if there are no frictions or transaction costs, the same good in 2 different locations can sell for different locations.
true or false and why b) Ignoring taxes and other transaction costs, if the actual rent for a machine is currently $8,000, its current price is $100,000 and is expected to rise by 4% a year, the depreciation rate is 3% a year, and the market interest rate is 8% a year, then it pays for a firm to rent rather than buy the machine.
Institutions that strengthen the certainty of economic transactions increase transaction costs. O True O False An influx of technology firms entering the cloud market could result in the of cloud offerings. (Select the best answer). O Commoditization O Institutionalization O Monetization O Securitization
Collecting dietary intake is important for monitoring individuals, but has no use in the community. True or false?
True or False: Cost behavior is the most important characteristic of costs for managerial decision making. True or False: The quality of the cost equation depends on collecting appropriate data.
TRUE OR FALSE A. True or False / When units are completed, costs are transferred out of WIP and into finished goods inventory. B True or False / When units are sold, costs are transferred out of finished goods inventory and into cost of goods sold (COGS). C True or False / MOH is increased by the purchase of indirect materials, indirect labor and costs to run the factory, and reduced by MOH applied to WIP. D. True or False...
Decision Making Extra Credit 1. Another name for relevant cost is avoidable cost a. True b. False 2. Wages from a job a student gives up to attend summer school would be a sunk cost a. True b. False 3. A special order of goods or services should always be accepted when the incremental revenue exceeds the normal revenue. a. True b. False 4. Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors which...