In-Sourcing (In-House Development) Uses the Professional Expertise Within an Organization

question 54

True/False

In-sourcing (in-house development) uses the professional expertise within an organization to develop and maintain its information technology systems. In-sourcing has been instrumental in creating a viable supply of IT professionals and in creating a better quality workforce combining both technical and business skills.

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Definitions:

Incremental Pre-tax Profits

Profits generated from a specific event or decision, calculated before taxes are deducted.

DSO

Days Sales Outstanding, a measure of the average number of days that it takes a company to collect payment after a sale has been made.

Bad Debt

A receivable that is considered irrecoverable and is therefore written off as a loss.

Incremental Cost

The additional cost associated with producing one additional unit of output.