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Management · Q386

Management Accounting

Graduate and Post Graduate · Management · question 386

Q386

Production of goods or services that can be bought from outside suppliers is classified as

A.
idle sourcing
B.
sunk sourcing
C.
outsourcing
D.
in-sourcing
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Production of goods or services that can be bought from outside suppliers is classified as in-sourcing. Insourcing is a business practice in which work that would otherwise have been contracted out is performed in house. Insourcing often involves bringing in specialists to fill temporary needs or training existing personnel to perform tasks that would otherwise have been outsourced.