What Is One Benefit of Outsourcing

question 35

Multiple Choice

What is one benefit of outsourcing?

• A)Converts fixed costs into variable costs
• B)Increase costs
• C)Increases control
• D)Reduced transportation costs
• E)Decreased responsibility

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Definitions:

Operating Activities

Activities that relate to a company's primary operations, including revenue and expense transactions that affect the net income.

U.S. GAAP

United States Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Investing Activities

Transactions involving the acquisition or disposal of non-current assets, such as property, plant, and equipment, included in a company’s cash flow statement.

Statement of Cash Flows

A financial document that provides detailed information about a company's cash inflows and outflows over a specific period.