When a Client Outsources,management Knows How Much the Outsourced Services

question 19

Multiple Choice

When a client outsources,management knows how much the outsourced services will cost,which eliminates____________________.

• A)transaction risks
• B)miscalculation risks
• C)compliance risks
• D)legal risks

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Definitions:

External Failure Cost

Costs incurred when a product or service fails to meet quality standards after it is delivered to the customer, including returns, repairs, and warranty claims.

Non-Value-Added

Activities or processes that do not add any significant value to the final product or service from the customer's perspective.

Value-Added Ratio

The ratio of the value-added lead time to the total lead time.

External Failure Cost

Costs incurred when products or services fail to meet quality standards after being delivered to the customer, including returns, repairs, and lost sales.