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

Outsourcing refers to the practice of hiring an external company or individual to perform a task or function that is normally done in-house. In this case, the small business has contracted with a local CPA firm to process their payroll, which is a common example of outsourcing. Transfer pricing refers to the practice of setting prices for goods or services sold between a parent company and its subsidiaries, while offshoring and offsourcing refer specifically to the practice of moving business functions or operations to other countries or outsourcing to a third-party vendor located overseas.

Many Small Businesses Hire a Local CPA Firm to Process