Which of the Following Is True About Outsourcing

question 2

Multiple Choice

Which of the following is true about outsourcing?

• A)Outsourcing became a valid choice after certain methods of production and manufacturing became obsolete.
• B)Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.
• C)Technological advancements have slowed the momentum of outsourcing being done today.
• D)Statistical forecasting resulted in companies' transferring their operations and functions overseas.
• E)Companies shifted their operations overseas because customers were complaining about poor client services domestically.

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Definitions:

Deferral Adjusting Entry

An accounting entry made to defer the recognition of revenue or expenses to a future period.

Unearned Revenue

Money received by an entity for a service or product that has yet to be delivered or completed.

Interest Revenue

Income earned from lending money or from investments in interest-bearing accounts or securities.

Matching Revenue

The accounting principle of recognizing revenue and the related expenses in the same accounting period to accurately report profit.