The Risk of Losing a Fundamental Understanding of a Company's

question 50

Multiple Choice

The risk of losing a fundamental understanding of a company's AIS needs and the strategic users of an AIS as a result of outsourcing is referred to as

• A)focus reduction.
• B)loss of control.
• C)reduced competitive advantage.
• D)unfulfilled goals.

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Definitions:

Facility Costs

Expenses associated with the physical buildings and infrastructure used in production, storage, and operations of a business.

Product Variety

The range of different products or services offered by a company to meet diverse customer needs or market segments.

Distribution Network

The linked network of warehouses and logistical systems that transport products from manufacturers to buyers.

Manufacturer Storage

The practice of holding inventory at the manufacturer’s location until it is needed for distribution or sale.