Which of the following is a benefit of contract manufacturing?
A)The home company keeps full control over the manufacturing process.
B)Contract manufacturing helps the company make greater profits on manufacturing.
C)Contract manufacturing gives the company a chance to start faster, with less risk.
D)There is development of foreign-based manufacturing facilities.
E)Contract manufacturing does not require an overseas marketing organization or network.

Question

Quizplus · Accepted Answer

Contract manufacturing allows companies to start manufacturing quickly without having to build their own manufacturing facilities or invest in equipment and technology. This reduces the risk associated with investing in manufacturing, and allows companies to focus on marketing and other areas of the business.

Additional note: Option E is not a benefit of contract manufacturing as it is not related to the manufacturing process, but rather marketing.

Which of the Following Is a Benefit of Contract Manufacturing