Which of the Following Observations About Outsourcing Is True for the U.S.economy

question 55

Multiple Choice

Which of the following observations about outsourcing is true for the U.S.economy?

• A)The U.S.is the smallest international outsourcer in terms of dollar value.
• B)About 30 percent of U.S.manufacturing costs were outsourced in 2003.
• C)The highest percentage of outsourcing by U.S.businesses in 2003 was to other firms located in the United States.
• D)Imports of business services by the U.S.made up around 2.5 percent of gross domestic product in 2003.

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Definitions:

Externally Restricted

Pertains to funds or resources that are subject to restrictions regarding their use, imposed by external parties or agreements.

Deferral Method

An accounting method whereby revenue or expenses are postponed to future accounting periods to match revenues with expenses in the period in which they occur.

Encumbrance System

A financial accounting system that tracks commitments made against budgeted funds before actual expenditures are recorded.

Purchase Order

A formal document issued by a buyer to a seller, detailing the products or services ordered and the agreed-upon prices.