What Are Two Primary Risks Associated with Outsourcing

question 64

Multiple Choice

What are two primary risks associated with outsourcing?

• A)increased costs and displaced workers
• B)impact on public and private relations
• C)service and security
• D)loss of strategic and operational control

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Definitions:

Activity-Based Costing

A pricing technique that identifies tasks within an organization and allocates the expense of each task to all goods and services based on their real usage.

Overhead Costs

Expenses not directly tied to the production of goods or services, such as rent, utilities, and office supplies.

Supervising Activity

An oversight function involving the monitoring and direction of resources, processes, or employees to achieve organizational objectives efficiently.

First Stage Allocations

The process of assigning indirect costs to different departments or cost centers within a business.