Advantages of Outsourcing Do Not Include

question 47

Multiple Choice

Advantages of outsourcing do not include

• A) cost savings
• B) outside expertise
• C) renewed focus on core competencies
• D) gaining outside technologies
• E) creating future competition

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Definitions:

Materials Quantity Variance

The deviation of the actual material usage in manufacturing from the expected standard usage, multiplied by the cost per unit according to standard pricing.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and are easily traceable to it.

Variable Manufacturing Overhead

Overhead costs that fluctuate with changes in production volume, such as utility expenses and machine maintenance.

Variable Overhead

Indirect production costs that change in relation to the level of production activity, such as utilities for a manufacturing facility.