Loss of Control Is

question 10

Multiple Choice

Loss of control is:

• A) seldom a concern when considering outsourcing.
• B) a concern of the supplier in an outsourcing situation.
• C) a concern within the buying organization when considering outsourcing.
• D) one of the advantages of outsourcing.
• E) one reason few organizations outsource services.

---

Definitions:

Standard Costing

A costing method that assigns average costs to each production unit, based on estimated direct materials, labor, and overhead costs.

Variable Overhead

This consists of expenses that vary with production output, including costs not directly tied to manufacturing but essential for operation.

Labour Efficiency Variance

The difference between the actual labor hours used and the standard labor hours set for the production level achieved.

Incremental Cost Approach

A decision-making process focusing on the costs that change with the level of production or the introduction of a new process.