What Is a Reason for Using 3PL Services

question 1

Multiple Choice

What is a reason for using 3PL services?

• A) Outsourcing is not a corporate philosophy
• B) Logistics is a core competency of the company
• C) Company needs greater process flexibility
• D) Company requires shipment security

---

Definitions:

Cost Allocation

The process of assigning indirect costs to different departments, products, or projects based on relevant distribution bases.

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made.

Cost Objects

Any item for which costs are separately measured and tracked, including products, services, projects, or activities.

Cost Allocation

The process of assigning indirect costs to different products, services, or business units within a company, typically using a logical allocation base.