Which of the Following Is an Advantage of Outsourcing

question 2

Multiple Choice

Which of the following is an advantage of outsourcing?

• A)It ensures short-term cost savings to the business.
• B)It enables more control over decisions that are often critical to all employees.
• C)It brings about greater responsiveness to unique and specific employee problems.
• D)It reshapes the compensation function to make it less client focused and more promotion focused.
• E)It results in the preservation of information from rivals and competitors.

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Definitions:

Past Cost Data

Historical financial information regarding the costs incurred by a business.

Ideal Standards

Standards that can be achieved only under perfect operating conditions, such as no idle time, no machine breakdowns, and no materials spoilage; also called theoretical standards.

Machine Breakdowns

Refers to the unexpected failures or malfunctions of machinery that disrupt the production process or operations.

Materials Spoilage

The portion of raw materials that becomes unusable and is discarded during the production process.