What Are the Main Considerations in an Off-Shoring Decision

question 47

Multiple Choice

What are the main considerations in an off-shoring decision?

• A)Low labor costs now and in the future
• B)Low wage rates currently
• C)Cost and ease of entry to the country - and exit
• D)Access to top quality resources and overall operational efficiency

---

Definitions:

Average Daily Float

Indicates the average amount of un-cleared checks or unprocessed transactions in a company's bank account over a certain period, impacting the available balance.

Cheques

A method of payment that allows an individual to instruct their bank to pay a specific amount from their account to another party.

Daily Interest Rate

This is the interest rate applied to a loan or investment for a single day, often used in calculating accrued interest over a period.

Collection Float

The time difference between when a check is deposited and when the funds are available in the account, affecting the business’s cash flow.