Which of the Following Is the Most Likely Why Companies

question 141

Multiple Choice

Which of the following is the most likely why companies outsource?

• A) Tap outside sources of expertise
• B) Concentrate resources on core business
• C) Reduce headcount and related expenses
• D) Better manage the costs of internal processes

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Definitions:

Net Sales

The total revenue generated from goods or services sold, after deducting returns, allowances for damaged or missing goods, and discounts.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Merchandise Inventory

Goods that a retail or wholesale company intends to sell to customers. The inventory account is adjusted based on purchases and sales.

Purchases Returns

Goods returned to the supplier from the buyer due to defects, inaccuracies in orders, or other reasons.