One of the Reasons Outsourcing Is Undertaken Is to ________

question 23

Multiple Choice

One of the reasons outsourcing is undertaken is to ________.

• A) diversify the business portfolio
• B) increase costs for the outsourcing vendor
• C) cap an organization's financial exposure
• D) enhance management's focus on nonessential functions

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Definitions:

Indirect Labor

The wages paid to employees who are not directly involved in producing goods but support those who are, such as maintenance workers and supervisors.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected costs based on the standard costs for the actual production volume.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of production output, such as utilities or materials handling expenses.