What Is One Service Risk to an Organization in Having

question 36

Multiple Choice

What is one service risk to an organization in having a company provide outsourcing arrangements?

• A)The vendor might have a less personal relationship with employees.
• B)The outsourcer might allow changes to the contract.
• C)The vendor might limit certain proprietary technology.
• D)The outsourcer might have a disruption of service.

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Definitions:

Standard Wage Rate

The predetermined rate of pay for a specific job or task over a set time period.

Wage Rate

The amount of compensation paid to an employee per unit of time (e.g., hour, day, week) for their labor.

Direct Materials Quantity Variance

This measures the difference between the actual quantity of materials used in production and the standard amount expected to be used.

Standard Costs

Pre-determined or estimated costs for products or services used for budgeting and performance evaluation purposes.