Describe the Outsourcing Design Strategy

question 21

Essay

Describe the outsourcing design strategy. Discuss its advantages and disadvantages.

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Definitions:

Contingent Liability

A possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

AASB 137

refers to an Australian accounting standard concerning the recognition and measurement of provisions, contingent liabilities, and contingent assets.

Financial Effect

The impact of financial transactions and events on the financial statements of an organization, altering its financial condition or performance.

Uncertainties

Situations or elements with unpredictable outcomes, often affecting decision-making and planning in business and science.