Outsourcing Is Used When

question 9

Multiple Choice

Outsourcing is used when:

• A)The project has a project manager who can coordinate vendor efforts
• B)There is a desire to build in-house skills
• C)In-house functional and technical skills exist
• D)The business need is not core to the business
• E)None of these

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Definitions:

Cost Center

A division within an organization that does not directly add to profit but still incurs costs, such as a research and development department.

Maintenance Department

A division within an organization responsible for the upkeep, repair, and servicing of equipment and facilities.

Direct Expense

Expenses that can be directly attributed to the production of goods or services, such as raw materials and labor costs.

Profit Center

A profit center is a branch or division of a company that is responsible for generating its own revenue and profit, evaluated independently.