When an Organization Hires Outside the Company to Fulfill One

question 25

Multiple Choice

When an organization hires outside the company to fulfill one or more of its core functions, it is called:

• A)Offshoring
• B)Outsourcing
• C)Contracting
• D)None of the above

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Definitions:

Direct Cost

Expenditures that can be directly associated with manufacturing certain goods or services, like labor and raw materials.

Manufacturing Equipment

Tools and machinery used in the process of producing goods from raw materials.

Sprinkles

Small pieces of confectionery used as a decoration or to add texture to desserts.

Indirect Material

Materials used in the production process that cannot be directly linked to specific products, such as lubricants and cleaning supplies.