The Most Common Reason for Outsourcing Is to Reduce Costs

question 25

Multiple Choice

The most common reason for outsourcing is to reduce costs. Another major reason for outsourcing is to

• A) gradually exit the U.S. product market.
• B) share significant R&D investments.
• C) develop new goods and services.
• D) gain access to special skills for higher quality output.

---

Definitions:

Decrease Costs

The process or strategy of reducing the amount of money required for operations, production, or other activities within an organization.

Increase Revenues

The process of enhancing the income generated by a business through either increased sales, improved pricing strategies, or expanding market reach.

Manufacturing Organizations

Companies engaged in the production of goods through the use of labor, machines, tools, and chemical or biological processing or formulation.

Service Organizations

Companies or entities that provide intangible products or services to customers or clients.