There Are Certain Risks Associated with Outsourcing

question 44

Multiple Choice

There are certain risks associated with outsourcing.One possible risk is the exposure of the sharing of confidential data with unauthorized parties.This risk can be placed into the category of

• A)a locked-in system.
• B)a loss of control.
• C)a reduced competitive advantage.
• D)inflexibility.

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Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service, often varying with the level of production.

Fixed Cost

Expenses that do not change with the level of production or sales, such as rent or salaries.