What is one benefit of outsourcing?
A)Converts fixed costs into variable costs
B)Increase costs
C)Increases control
D)Reduced transportation costs
E)Decreased responsibility

Question

Quizplus · Accepted Answer

By outsourcing, a firm can convert fixed costs (such as salaries and benefits for in-house employees) into variable costs, which are dependent on the level of production or services being outsourced. This allows the firm to better manage its costs and potentially increase profitability.

What Is One Benefit of Outsourcing