Which of the Following Points Is Not Considered a Danger

question 13

Multiple Choice

Which of the following points is not considered a danger of outsourcing?

• A) Loss of control
• B) Loss of client focus
• C) Loss of centralization
• D) Loss of clarity
• E) Loss of cost control

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Definitions:

Operating Activities

Transactions and other events related to the core business operations, affecting the operational cash flows of a company.

Selling and Administrative Expense

A category of expenses including overheads related to the general operation of a company, such as executive salaries, marketing, office supplies, and utilities.

Direct Method

A method for allocating service department costs directly to producing departments without intermediate allocations among service departments.

Operating Activities

Activities that are directly related to the running of a business and the production of its goods and services, affecting the company's cash flow.