An Organizationally Driven Reason for Outsourcing Is That It Can

question 38

True/False

An organizationally driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.

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Definitions:

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.

Activity-Based Costing

An accounting method that assigns costs to products based on the activities involved in producing those products.

Decision

The process of making choices among alternative courses of action.