All the Following Are Reasons to Outsource an Organizational Function

question 46

Multiple Choice

All the following are reasons to outsource an organizational function EXCEPT

• A) the function is noncore to the organization.
• B) another firm has greater economies-of-scale and can provide the service cheaper.
• C) the organization does not have employees with the necessary skills to perform the function.
• D) the function has legal compliance issues that the organization can push "downstream" to the outsourcing company.

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Definitions:

IFRS Rules

Guidelines and regulations within the International Financial Reporting Standards that specify how financial transactions and events should be recorded and reported.

Revenue Recognition

The accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.

U.S.GAAP

United States Generally Accepted Accounting Principles; the framework of accounting standards, principles, and procedures used in the financial reporting in the U.S.

Transaction Management

The process of overseeing and managing financial transactions to ensure they are completed efficiently and effectively.