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Outsourcing Refers to the Practice of Transferring the Operations of a Business

question 52

True/False

Outsourcing refers to the practice of transferring the operations of a business function to an outside supplier.


Definitions:

Selling Price

The amount for which a product or service is sold to the customer.

Unit Cost

The expenditure involved in generating, keeping, or obtaining one unit of a product or service.

Overhead

An ongoing expense of operating a business, such as rent, utilities, and salaries.

Break-even Price

The price level at which the revenues for a product or service equal the costs, resulting in neither profit nor loss.

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