Which of the Following Is a Key Motivation to Outsource

question 21

Multiple Choice

Which of the following is a key motivation to outsource data storage?

• A)To allow company personnel to maintain their positions in the company
• B)To contract with company employees to maintain their loyalty
• C)To reduce costs required for data storage and maintenance
• D)To maintain data storage on site with the least amount of effort

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Definitions:

Machine-Hours

A measure of the amount of time machines are utilized during the production process.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the period begins based on estimated costs and activity levels.

Machine-Hours

A unit of measure representing the operational time of a machine, used in calculating manufacturing costs and efficiency.

Overhead Applied

The estimated overhead cost assigned to each unit of product manufactured based on a predetermined rate.