Businesses Choose Outsourcing as an Alternative to Making Goods In-House

question 117

Multiple Choice

Businesses choose outsourcing as an alternative to making goods in-house or providing in-house services when:

• A)they want to reduce the amount of depreciation indicated on their books of account.
• B)proprietary technology has the potential to raise security concerns.
• C)conflicts arise between nonunion outside workers and in-house union employees.
• D)the company needs to reduce costs to remain competitive.

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Definitions:

Financial Objective

A specific, measurable goal related to the financial performance or position of a company, such as revenue growth, cost reduction, or achieving a certain return on investment.

Reduce Overall Sales Costs

A strategic objective aimed at lowering the total expenses associated with the selling of products or services, enhancing profitability.

Increase Sales Volume

Strategies or actions taken to boost the quantity of products or services sold, often aiming to enhance revenue and market presence.

Segment Rationalization Test

A method of evaluating the viability and profitability of different market segments to determine where to focus marketing and product development efforts.