Outsourcing ERP Functions Might Look Cheaper on Paper, but Savvy

question 10

Multiple Choice

Outsourcing ERP functions might look cheaper on paper, but savvy managers must consider the total cost of ________.

• A) attorneys
• B) consultants
• C) ownership
• D) management
• E) none of the above

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Definitions:

Marginal Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify.

Variable Costs

Costs that vary directly with the level of production or business activity.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales.

Fixed Costs

Costs that do not change with the level of output or sales over a certain period, such as rent or salaries.