94.One of the potential dangers from outsourcing is the possible occurrence of low-ball pricing.
True False
95.A potential danger from outsourcing is that a company may become too dependent on the supplier.
True False
96.Outsourcing reduces the extent of a company's vertical integration.
True False
97.A business segment should be eliminated if the revenue generated by the segment exceeds only its fixed costs.
True False
98.Facility-level costs are not involved in decisions to eliminate a segment of a business.
True False
99.Segment reports are used to evaluate the true profitability of a company's business segments.
True False
100.Equipment should be evaluated for possible replacement only as it nears the end of its useful life.
True False
101.The book value of equipment generally is one of the most important factors to consider in deciding to replace the equipment.
True False
102.The market value of equipment owned by a company is a sunk cost and should not be taken into account in deciding whether or not to replace the equipment.
True False
103.Taylor Company is considering whether or not to replace a drill press that is several years old. The current market value of the old equipment is an opportunity cost of replacing the drill press.
True False