Discuss the Major Risks Associated with Global Sourcing

question 11

Essay

Discuss the major risks associated with global sourcing.

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Definitions:

Production Costs

Expenses directly related to the manufacture of goods, including materials, labor, and overhead.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business minus any costs associated with its sale or disposal.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred in converting raw materials into finished goods.

Job Cost Sheets

Documents that record and track the direct materials, direct labor, and manufacturing overhead costs allocated to an individual job or project.