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

Correct answer: B. off-shoring

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

Explanation

Obtaining products or services from suppliers in another country, usually to reduce costs, is called off-shoring. Outsourcing can occur domestically or internationally, so it is the broader term.

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About Cost Accounting

Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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