In Deciding Whether to Outsource a Service Department or Not,the

question 125

True/False

In deciding whether to outsource a service department or not,the cost of the service department should be estimated using the step method of allocation.

---

Definitions:

Local Human Capital

The knowledge, skills, abilities, and other attributes that make up the location-specific experiences of employees in a particular country or market.

International Human Capital

Knowledge of global best practices, global industry standards, international trade laws, modular systems and processes, cross-border industry networks, and other experience applicable across multiple companies and countries.

Corporate Human Capital

Company-specific knowledge, skills, and abilities that transcend any particular location within the entire global company, not simply the collective knowledge of the staff at headquarters.

Location Specificity

Refers to the unique attributes or characteristics that are specific to a particular geographic location.