Which of the Following Observations Is True of Taking the Services

question 7

Multiple Choice

Which of the following observations is true of taking the services of independent contractors?

• A) Core competencies can be effectively outsourced to contractors.
• B) The company is not supposed to directly supervise the contractors.
• C) It is a relatively slow process with low revocability.
• D) The organization can achieve increased quality though the costs are more.
• E) It provides an organization increased control over the operations.

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Definitions:

Material Cost

The expense incurred in acquiring the raw materials needed to produce a good, often a significant portion of total production costs.

Holding Cost

The expenses associated with storing unsold goods, including storage, insurance, and deteriorating costs.

Purchase Price

The amount of money paid to acquire a product or service.

Cycle Inventory

Inventory that a company needs to meet average demand in the timeframe between placing new orders, part of inventory management.