Question

Which of the following is false​? A. Contract manufacturers are manufacturers that make products for other companies. B. Outsourcing decisions are often referred to as​ "make-or-buy" decisions. C. Outsourcing decisions should take into consideration the intended use of freed capacity. D. Outsourcing refers to having work performed overseas.

Answer 1

Answer: Outsourcing  refers to having work performed overseas.

Explanation:

Outsourcing means the business hires third party firms for performance of service or product. Companies adopt this measure to reduce their business costs. With the help of outsourcing the overhead and labor costs can be cut down.

Contract manufacturers produce goods on behalf of the company for cost benefit purpose or availability of raw materials. One of the disadvantages of outsourcing is that the sensitive information about the company may be leaked. Through outsourcing some of the activities the company concentrate on core business activities.