Smiley Face Company manufactures signs from direct materials to the finished product.This is considered ________.
A) insourcing
B) outsourcing
C) right-shoring
D) fragmentation

Question

Quizplus · Accepted Answer

Insourcing refers to the practice of producing goods or services in-house rather than outsourcing them to a third-party provider. In this case, Smiley Face Company is manufacturing signs from start to finish, indicating that they are insourcing the production process.

B) Outsourcing refers to the practice of hiring an external company or individual to perform a business process or service that would otherwise be done in-house. This is not the case for Smiley Face Company.

C) Right-shoring refers to the practice of selecting the most appropriate location or mix of locations for production based on factors such as cost, quality, and availability of resources. This term does not apply to the given scenario.

D) Fragmentation refers to the practice of breaking down a task or process into smaller, more manageable parts. While Smiley Face Company may break down its production process into various stages, fragmentation does not fully capture the nature of their production process.

Smiley Face Company Manufactures Signs from Direct Materials to the Finished