Outsourcing Is When

question 90

Multiple Choice

Outsourcing is when:

• A) consumers buy products made in another country.
• B) foreign consumers buy products made in the United States.
• C) U.S.firms relocate their production to overseas facilities.
• D) the costs of operating are higher in another country.
• E) the domestic labor supply shrinks.

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Definitions:

FASB 13

Accounting standard issued by the Financial Accounting Standards Board related to lease accounting.

Operating Lease

A lease in which the lessee does not effectively acquire ownership of the leased asset. Accounted for as a stream of expense payments on the income statement. No entry is made on the balance sheet to reflect the acquisition of the asset. The most common form of off balance sheet financing. Compare with Financing lease.

Economic Life

The expected period during which an asset remains useful to the average owner.

Face Value

The nominal or dollar value printed on a financial instrument, such as a bond or stock certificate.