Companies that use "contract manufacturing" provide all of the following advantages except:

Question

Quizplus · Accepted Answer

Contract manufacturing allows companies to minimize their financial commitments by outsourcing the production process. They do not have to invest in factories, equipment or hiring and training workers. They can also gain access to the expertise and specialized equipment of other manufacturers. Additionally, the licensing firm can focus on marketing and distribution rather than production. However, using contract manufacturing also requires a significant commitment of management resources to oversee and coordinate the production process and ensure quality control. Therefore, the advantage of limited financial resources is valid, but the choice of considerable commitment of management resources is not an advantage.

Companies That Use "Contract Manufacturing" Provide All of the Following