Which of the Following Is an Improvement-Driven Reason for Outsourcing

question 68

Multiple Choice

Which of the following is an improvement-driven reason for outsourcing?

• A) Shorten cycle time.
• B) Improve effectiveness by focusing on what the firm does best.
• C) Increase product and service value by improving response to customer needs.
• D) Turn fixed costs into variable costs.
• E) Reduce costs through a lower cost structure.

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Definitions:

Price Elastic

Refers to the sensitivity of the demand for a product in response to changes in its price.

Total Revenue

The total amount of money received by a company from its sales of goods or services.

Demand

The desire of purchasers, consumers, or clients for a particular good or service coupled with the ability to pay for it.

Cross-Price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between the two products.