The Use of E-Commerce to Allow Firms to Reduce the Costs

question 55

Multiple Choice

The use of e-commerce to allow firms to reduce the costs of processing transactions while improving their supply-chain management skills and tightening the control of their inventories is beginning to replace:

• A) Outsourcing
• B) Unrelated diversification
• C) De-integration
• D) Vertical integration

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Definitions:

Process

A series of actions or steps taken in order to achieve a particular end, especially in the context of business operations or manufacturing.

Job Order Operations

A production system where costs are assigned to specific orders, lots, or batches.

Direct Labor

The financial outlay for remuneration of personnel directly associated with manufacturing products or offering services.

Production Department

The production department is a segment of a company responsible for the actual creation and assembly of the company's products.