Moving the production of goods from within the organization to a provider outside the organization is referred to as
A)transfer pricing.
B)product diffusion.
C)segment slicing.
D)outsourcing.

Question

Quizplus · Accepted Answer

Outsourcing refers to the practice of moving the production of goods or services from within an organization to an external provider. This can include outsourcing manufacturing, customer service, IT services, and other business operations. This strategy is often used to reduce costs, improve efficiency, and allow the organization to focus on its core competencies. Transfer pricing refers to the practice of setting the price of goods or services between different divisions or subsidiaries of the same organization. Product diffusion refers to the spread of a product through a market or population. Segment slicing is not a commonly used business term.

Moving the Production of Goods from Within the Organization to a Provider