Which of the Following Is True About Outsourcing

question 60

Multiple Choice

Which of the following is true about outsourcing?

• A)Outsourcing became a valid choice after certain methods of production and manufacturing became obsolete.
• B)Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.
• C)Technological advancements have slowed the momentum of outsourcing being done today.
• D)Statistical forecasting resulted in companies transferring their operations and functions overseas.
• E)Companies shifting their operations overseas did so because customers were complaining about poor client services domestically.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account that represents the estimated portion of accounts receivable that may not be collectible.

Uncollectible Accounts

Accounts receivable that are unlikely to be recovered and are considered bad debts.

Accounts Receivable Turnover

A financial ratio that measures how often a company collects its average accounts receivable, indicating the efficiency of credit and collections policies.

Average Collection Period

This metric calculates the average number of days it takes for a company to receive payments from its customers, indicating the efficiency of its credit and collection policies.