Outsourcing Does Have Certain Risks Such as a Loss of Control

question 42

True/False

Outsourcing does have certain risks such as a loss of control and potential lack of congruency between the training program and desired outcomes.

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Definitions:

Total Manufacturing Costs

The aggregate of all costs involved in producing a finished product, including direct materials, direct labor, and manufacturing overhead.

Manufacturing Overhead Applied

The amount of manufacturing overhead costs allocated to individual products or product lines based on a predetermined overhead rate.

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be easily traced back to the finished goods.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, based on a predetermined activity base.