Outsourcing

question 44

Multiple Choice

Outsourcing:

• A) eliminates the need for a value chain.
• B) reduces the firm's dependence on its value chain.
• C) reorders the steps in a firm's value chain.
• D) moves some value chain activities outside the firm.
• E) strengthens the firm's capabilities in each value chain function.

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Definitions:

Transportation Cost

Expenses incurred in moving goods from one location to another, including freight charges, fuel costs, and labor.

Hidden Costs

Expenses that are not obvious at the initial stage but emerge during the process or lifecycle of a project, product, or service.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, operations, and financial health.

Product Flow

The movement of goods from the place of production to the point of sale and finally to the end-consumer, encompassing the entire supply chain process.