Which of the following is most important for managers to consider when calculating the cost of outsourced labor?

Question

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The expected level of productivity in comparison to the wage rate is the most important factor for managers to consider when calculating the cost of outsourced labor. This is because it will determine the overall cost-effectiveness of outsourcing. If the productivity of the outsourced labor is high, then the cost of outsourcing will be lower. Conversely, if the productivity of the outsourced labor is low, then the cost of outsourcing will be higher.

Which of the Following Is Most Important for Managers to Consider