Identify the correct term for each definition of the five types of special decis
ID: 2429555 • Letter: I
Question
Identify the correct term for each definition of the five types of special decisions encountered in business practice
A. Asset Replacement
B. Outsourcing
C. Segment Elimination
D. Scarce Resource Allocation
E. Special Order Decision
1 Deciding whether to accept an offer from someone other than a regular customer to buy goods or services at below-normal selling prices
2 Deciding whether to buy goods and services from other companies rather than producing them internally
3 Deciding between continuing operating existing equipment or replacing it with new equipment
4 Deciding which products to produce due to limited resources
5 Deciding whether to get rid of a department, service, branch, office, or other part of an organization
Explanation / Answer
1. Deciding whether to accept an offer from someone other than a regular customer to buy goods or services at below-normal selling prices E. Special Order Decision 2. Deciding whether to buy goods and services from other companies rather than producing them internally B. Outsourcing 3. Deciding between continuing operating existing equipment or replacing it with new equipment A. Asset Replacement 4. Deciding which products to produce due to limited resources D. Scarce Resource Allocation 5. Deciding whether to get rid of a department, service, branch, office, or other part of an organization C. Segment Elimination