The Purchase of a Good or Service That Was Previously

question 27

Multiple Choice

The purchase of a good or service that was previously provided internally, or that could be provided internally, is called:

• A) Outsourcing
• B) Insourcing
• C) Inshoring
• D) Offshoring
• E) Nearsourcing

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Definitions:

Direct Labor Dollar

The total cost of wages paid to workers who are directly involved in the production of goods or delivery of services.

Rent Expense

The cost incurred for leasing or renting property or equipment, considered an operating expense in accounting.

Supervision Expense

Supervision expense refers to the cost associated with overseeing and managing workers or operations within a business.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life.