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:

Batches

Quantities of goods or materials processed or produced at one time during manufacturing.

Overhead Cost

Indirect expenses related to manufacturing or production, which are not directly tied to a specific product, such as rent, utilities, and salaries of managers.

Activity Rates

are used in activity-based costing to allocate costs to products or services based on specific activities requiring the costs, like inspection or setup.

Activity-Based Costing

An approach to costing that apportions overhead and indirect charges to particular activities, ensuring more accurate cost determinations for products or services.