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

question 44

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) Shorten cycle time.
• D) Improve quality and productivity.
• E) Obtain expertise, skills, and technologies that are otherwise not available.

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Definitions:

Administrative Expense

An administrative expense includes costs related to the general operations of a business, such as salaries of executive personnel, office supplies, and utilities.

Operating Departments

Divisions or units within an organization that are directly involved in the core operations or primary purpose of the business.

Setup Cost

The expenses incurred to get equipment ready to process a different batch of goods, distinct from the operational costs of running the equipment.

Number of Setups

A measurement in manufacturing that refers to how many times equipment is adjusted or changed to produce different products.