When Considering Outsourcing, What Should Firms Be Sure to Avoid

question 51

Multiple Choice

When considering outsourcing, what should firms be sure to avoid?

• A)Losing control of noncore activities that don't distinguish the firm
• B)Allowing outsourcing to develop into a substitute for innovation
• C)Giving the outsourcing partner opportunities to become a strong competitor
• D)Allowing employees transferred to the outsourcing partner to rejoin the firm
• E)Adverse corporate tax implications of asset transfers to the outsourcing partner

Analyze the effects of inventory changes on cost of goods sold and net income.

Identify and categorize different types of costs including direct materials, direct labor, and overhead.

Calculate the cost of finished goods given various financial and operational data.

Prepare a comprehensive income statement and understand its connection to the manufacturing statement.

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Definitions:

Stimulus Motive

An intrinsic desire to explore and interact with the environment, driven by external stimuli.

Primary Drive

A basic, innate urge or motivation, such as hunger or thirst, that prompts an organism to take action to satisfy its needs.

Secondary Drive

A learned association that becomes as motivating as primary biological drives through conditioning, such as the desire for money because it buys food.

Pygmy Chimpanzees

Also known as bonobos, a species of great ape known for their matriarchal societies and high levels of sexual behavior as a social activity.