________ Will Enable a Company to Reduce the Degree to Which

question 80

Multiple Choice

________ will enable a company to reduce the degree to which it is vertically integrated and the overall amount of specialized skills and knowledge that it would have to possess.

• A) Outsourcing
• B) Skimming
• C) Lean production
• D) Centralized production

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Definitions:

LIFO Cost Flow

A method of stock valuation where the latest items added to the inventory are the first ones to be sold.

Cost of Goods Sold

The direct expenses tied to the production of goods sold by a company, including material and labor costs.

Net Income

A company's profit amount after all deductions for expenses and taxes from revenue have taken place.

FIFO Cost Flow

An inventory valuation method (First In, First Out) where goods first purchased or produced are sold or used first.