Many small businesses hire a local CPA firm to process their payroll.This is an example of
A)transfer pricing.
B)offshoring.
C)offsourcing.
D)outsourcing.

Question

Quizplus · Accepted Answer

Hiring a local CPA firm to handle payroll is an example of outsourcing, as the business is contracting this functional area to an external entity instead of performing it in-house. Transfer pricing refers to the pricing of goods and services between related entities within the same company, while offshoring and outsouring both involve the delegation of certain business activities to an external party, with offshoring specifically involving the transfer of these activities to another country. Offsourcing is not a commonly used term in business, and may refer to either offshoring or outsourcing depending on context.

Many Small Businesses Hire a Local CPA Firm to Process