Schmidt Sewing Company incorporates the services of Deb's Sewing. Schmidt purchases pre-cut dresses from Deb's. This is primarily known as:

Question

Quizplus · Accepted Answer

Outsourcing refers to a business obtaining goods or services from an external source. In this case, Schmidt Sewing Company is purchasing pre-cut dresses from Deb's Sewing, which is an external source. Hence, the correct option is B. In-sourcing refers to a business obtaining goods or services from within the organization, while relevant costing involves analyzing the costs and benefits of different alternatives. Sunk costing refers to a cost that has already been incurred and cannot be recovered.

Schmidt Sewing Company Incorporates the Services of Deb's Sewing