Which of the Following Is an Advantage of Outsourcing

question 38

Multiple Choice

Which of the following is an advantage of outsourcing? 

• A) Increased dependence of suppliers. 
• B) The risk of leakage of confidential information. 
• C) Increased flexibility. 
• D) Risk of losing essential strategic knowledge.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.

Traceable Fixed Expenses

Fixed costs that can be directly associated with a specific business segment or product, aiding in accurate financial analysis and decision-making.

Common Fixed Expenses

Costs that do not vary with the level of production or sales and are shared among different segments or products of a company.

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.