What Is the Primary Driving Factor for Firms in Selecting

question 58

Multiple Choice

What is the primary driving factor for firms in selecting domestic outsourcing firms to build system solutions?

• A)To take advantage of technical skills the firm does not have
• B)To save labor costs
• C)To avoid change management issues
• D)To reduce the cost of hardware
• E)To avoid offshore outsourcing

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Definitions:

Markup

The amount added to the cost of goods to cover overhead and profit, determining the selling price.

Variable Selling

Expenses that change in proportion to the volume of goods or services sold, such as commissions and shipping fees.

Special Order

A one-time order that is not usually part of the company's normal ongoing operations, often requiring special pricing or terms.

Markup

The uplift in the purchase price of items specifically to recover operational overhead and to make a profit.