Which of the Following Is Not an Improvement-Driven Reason to Outsource

question 12

Multiple Choice

Which of the following is not an improvement-driven reason to outsource?

• A)Improve risk management
• B)Increase commitment in a noncore area
• C)Acquire innovative ideas
• D)Improve control
• E)Obtain expertise,skills and technologies

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Definitions:

Net Operating Income

An accounting term that represents the revenue minus the cost of goods sold and operating expenses, excluding taxes and interest.

Degree Of Operating Leverage

A measure, at a given level of sales, of how a percentage change in sales will affect profits. The degree of operating leverage is computed by dividing contribution margin by net operating income.

Variable Expenses

Costs that vary in direct proportion to changes in an activity level or volume, such as sales commissions.

Sales Increase

The rise in the volume or amount of sales or revenue a company achieves in a specific period compared to a previous period.