Which of the Following Is Not an Advantage of Outsourcing

question 28

Multiple Choice

Which of the following is not an advantage of outsourcing?

• A)cost savings
• B)gaining outside expertise
• C)improving operations and service
• D)outsourcing core competencies
• E)accessing outside technology

---

Definitions:

Standard Machine-Hours

A predetermined measure of how many hours of machine time should be used for a given level of production output.

Standard Cost System

A system that assigns predetermined costs to products and services, used for setting budgets and measuring performance.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including costs for utilities, rent, and maintenance for production facilities.

Machine-Hours

A measure of the amount of time a machine is operated, used as a basis for allocating manufacturing overhead costs to products.