Turning Over an Organizational Activity to an International Firm or Foreign

question 57

Multiple Choice

Turning over an organizational activity to an international firm or foreign firm is called _____.

• A) captive sourcing 
• B) onshoring 
• C) offshoring 
• D) commoditizing

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Definitions:

Direct Manufacturing Cost

Expenses directly tied to the production of specific goods, including materials and labor.

Relevant Range

The range of activity within which the assumptions about fixed costs and variable unit costs are valid for purposes of budgeting and decision-making.

Direct Costs

Expenses that can be directly traced to the production of specific goods or services, such as raw materials and labor.

Period Costs

Expenses that are not directly associated with the production process and are expensed in the period they are incurred.