Services That Do Not Require Physical Proximity to the Consumer

question 79

True/False

Services that do not require physical proximity to the consumer are especially attractive for offshoring.

---

Definitions:

Production Orders

Instructions to start production of a specific quantity of a product, detailing materials, timings, and resources required.

Direct Materials

Fundamental components directly associated with the creation of a specific item or provision of a service.

Direct Labor

The cost of employee labor that is directly involved in the manufacturing or production of goods or services.

Factory Overhead

Represents all indirect costs associated with the production process, including utilities, maintenance, and managerial salaries not directly traceable to specific products.