Outsourcing Leads to

question 39

Multiple Choice

Outsourcing leads to

• A)Increases in productivity and increases in total output.
• B)Increases in productivity and decreases in total output.
• C)Decreases in productivity and increases in total output.
• D)Decreases in productivity and decreases in total output.

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Definitions:

Fixed Factory Overhead

Costs associated with manufacturing that do not change with the level of production, such as salaries of supervisors and rent of the facility.

Sales Forecast

A sales forecast is the projection of the amount of revenue a company will generate through sales activities over a specific period.

Cash Receipts

Represents the money received by a business during a specific period, including revenues from sales, services, and loans.

Credit Sales

Credit Sales are transactions where the purchaser buys goods or services but the payment to the seller is delayed according to agreed terms, rather than paid in full at the time of sale.