Outsouring Is the Practice of Procuring from External Sources Services

question 36

True/False

Outsouring is the practice of procuring from external sources services or products that are normally part of an organization.

Recognize the role of organizational structure beyond the organizational chart.

Identify the applications and effectiveness of coordination through standardization, including job descriptions and training.

Acknowledge the effect of organizational design on flexibility, responsiveness, and coordination across units.

Understand the relationship between organizational structure and the external environment.

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Definitions:

Marginal Cost

The increment in cost due to the manufacture of an additional product or service unit.

Price Elasticity

A concept related to elasticity of demand, specifically measuring how much the quantity demanded of a good responds to changes in its price.

Marginal Cost

The expenditure associated with creating a subsequent unit of a product or service.

Subsidy

A financial contribution or support given by a government or institution to lower the price of a good or service, often intended to encourage production or consumption, reduce costs, or support industries.