From the organization's perspective, relevant information when deciding whether to outsource a support service is most likely to include the:
A) Incremental cash flows for insourcing versus outsourcing
B) Total allocated cost of the support service
C) Number of other departments that use the support service
D) Total cost of the support department

Question

Quizplus · Accepted Answer

Incremental cash flows for insourcing versus outsourcing are relevant because they directly compare the additional costs or savings associated with each option, providing a clear financial basis for the decision.

From the Organization's Perspective, Relevant Information When Deciding Whether to Outsource