Which of the Following Is a Benefit an Organization Can

question 8

Multiple Choice

Which of the following is a benefit an organization can receive from outsourcing?

• A) Financial savings
• B) Increase technical abilities
• C) Market agility
• D) All of these

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Definitions:

Carrying Costs

Expenses associated with holding or storing inventories, including warehousing, insurance, and spoilage costs.

Cash Inflows

The total amount of money being transferred into a business, often from operations, investments, or financing.

Net Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and ability to cover short-term liabilities.

JIT Inventory

JIT inventory, or Just-In-Time inventory, is a management strategy that aligns raw-material orders from suppliers directly with production schedules to reduce stock levels.