The Replacement of Internal Capacity and Production with That of a Supplier's

question 6

Multiple Choice

The replacement of internal capacity and production with that of a supplier's is known as:

• A) Capacity buying
• B) Outpartnering
• C) Outsourcing
• D) Capacity cushioning

---

Definitions:

Sales Taxes Payable

Liabilities accounted for the sales tax collected from customers on taxable transactions, which are due to be paid to the relevant tax authorities.

Sales Tax Expense

The cost incurred by a seller related to the sales tax charged on goods or services, which is often passed through to the consumer.

Interest Charged

Interest charged is the amount lenders impose on borrowers for the use of borrowed money, often expressed as an annual percentage rate.

Interest Payable

An account representing the amount of interest expense that has been incurred but not yet paid by a company.