While Outsourcing Manufacturing, Tech Support, and Back-Office Work Is Quite

question 79

True/False

While outsourcing manufacturing, tech support, and back-office work is quite common, it is still unheard of for companies to outsource product design.

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Definitions:

Materials Handling

The moving, protection, storage, and control of materials and products throughout manufacturing, warehousing, and distribution.

Direct Labor-Hours

The total hours of labor work directly on manufacturing the goods or providing the services, used for allocating labor costs to products or services.

Prefab Barns

Pre-engineered buildings designed for agricultural or storage purposes, which come in kits for quick and easy assembly.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often using direct labor hours or machine hours as the base.