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Management · Q394

Management Accounting

Graduate and Post Graduate · Management · question 394

Q394

In today's global world, an outsourcing of products or services from lower cost countries is classified as

A.
differential in-sourcing
B.
off-shoring
Answer
C.
incremental outsourcing
D.
differential outsourcing

Answer: Option B

Solution

Answer: Option B
Solution:
In today's global world, an outsourcing of products or services from lower cost countries is classified as off-shoring. Offshoring is the relocation of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.