The Key to Outsourcing Is to Purchase from the Outside

question 38

Multiple Choice

The key to outsourcing is to purchase from the outside only those activities that

• A) are not key to the company's distinctive competence.
• B) are very expensive.
• C) provide the company competitive advantage.
• D) are provided by an important supplier.
• E) are not very expensive.

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Definitions:

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc., especially in a group or organization.

Heterogeneity

The quality of being diverse and not uniform in composition or character, often used in the context of markets or services.

Customization

The process of modifying a product or service to meet the specific needs or preferences of individual customers or a targeted market segment.

Underapplied Overhead

Refers to the situation where the allocated manufacturing overhead cost is less than the actual overhead cost incurred.