What Can a Company Do to Reduce the Risk of an Outsourcing

question 112

Multiple Choice

What can a company do to reduce the risk of an outsourcing company entering the market and becoming a competitor?

• A)outsource non-core work
• B)erect strategic blocks
• C)establish trust
• D)monitor the outsource arrangement

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specified period of time, providing insight into its financial performance.

Absorption Costing

An accounting method where all manufacturing costs, including both fixed and variable costs, are allocated to produced units.

Direct Labor Cost

The total cost of wages paid to workers directly involved in manufacturing a product or delivering a service.

Fixed Manufacturing Overhead

The total of all manufacturing costs that do not vary with the level of production, such as rent, salaries, and insurance.