Which of the Following Is True About Outsourcing

question 2

Multiple Choice

Which of the following is true about outsourcing?

• A)Outsourcing became a valid choice after certain methods of production and manufacturing became obsolete.
• B)Outsourcing is a logical choice when a firm simply does not have certain expertise and is not willing to invest time and effort into developing it.
• C)Technological advancements have slowed the momentum of outsourcing being done today.
• D)Statistical forecasting resulted in companies' transferring their operations and functions overseas.
• E)Companies shifted their operations overseas because customers were complaining about poor client services domestically.

---

Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production inputs.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The uptick in the sum total of costs due to the production of an additional unit of a good or service.