Contracting out a firm's non-core,non-revenue-producing activities to other organizations primarily to reduce costs is known as
A)outsourcing.
B)offshoring.
C)mass customization.
D)commoditization.

Question

Quizplus · Accepted Answer

Outsourcing involves contracting out non-core activities such as IT services, customer service, or human resources to other organizations primarily to reduce costs. Offshoring involves relocating business processes to a different country, typically to take advantage of lower labor costs. Mass customization is a production process that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production. Commoditization involves the process of transforming differentiated products into commodities that are sold solely on the basis of price.

Contracting Out a Firm's Non-Core,non-Revenue-Producing Activities to Other Organizations Primarily