When a company accepts an outsourcing offer, managers must take specific action to eliminate internal costs.Which of the following is not a quantitative or qualitative factor managers should consider when accepting an outsourcing offer?
A)How to reduce direct labor
B)How to eliminate shipping charges
C)Impact on employee morale
D)Whether to replace production managers

Question

Quizplus · Accepted Answer

The impact on employee morale (C) is a qualitative factor that managers should consider as it can affect the overall productivity and satisfaction of the remaining employees. How to reduce direct labor (A) and how to eliminate shipping charges (B) are both quantitative factors that can directly impact the company's bottom line. However, whether to replace production managers (D) is not a factor that should be considered when accepting an outsourcing offer, as this decision would be unrelated to outsourcing and should be based on performance and job requirements.

When a Company Accepts an Outsourcing Offer, Managers Must Take