One Reason Organizations Outsource Is Because Specialized Vendors Can Achieve

question 28

True/False

One reason organizations outsource is because specialized vendors can achieve economies of scale for routine tasks that would be performed across many organizations.

---

Definitions:

Exclusive Franchise

A licensing agreement giving a single franchisee the right to be the only provider of the franchisor's product or service in a specific geographical area.

Variable Selling

Variable selling refers to the costs associated with selling products that vary with the level of sales activities, such as commissions and shipping expenses.

Administrative Expense

Costs related to the general operation of a business, including executive salaries, legal and financial fees, and other overhead costs.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities.