Question

Internal resources, such as the legal department, training department, information technology department, tend to be under-utilized, leading to a death spiral, when:

a. managers may choose whether to purchase the service internally or externally

b. the internal pricing system seeks to recover sunk costs

c. all of the answers are correct

d. the internal pricing system utilizes full costs

e. managers may decide to reduce the quantity of services used

Answer 1

here is your answer
b) the internal pricing system seek to recover sunk costs.

Answer 2

let me help you in handling this.

The above named departments such as the legal department together with the training department are examples of the dormant departments in any given institution because their roles arises fro time to time but they are not continuous.

Managers have limited control over these though the firm may decide to be hiring these workforce externally if the need arises.