All of the Following Statements Regarding Offshoring Are True EXCEPT

question 30

Multiple Choice

All of the following statements regarding offshoring are true EXCEPT that _____.

• A)offshoring is limited to low-skill jobs
• B)art director and animal scientist jobs are low in susceptibility to offshoring
• C)medial transcriptionists and proofreaders are high in susceptibility to offshoring
• D)labor costs and proximity to customers affect offshoring decisions

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Definitions:

Total Cost

The sum of all expenses incurred in producing a product or delivering a service, including direct costs like materials and labor, and indirect costs such as overhead.

Contribution Margin

A department’s net profit, used to cover indirect expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core activities.

Indirect Expenses

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a business.