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CTP · Question #740
CTP Question #740: Real Exam Question with Answer & Explanation
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Question
- (Topic 8) LLZ Company manufacturers metal detectors in California at a cost of $9 per unit. The most expensive component to make is the sensor which goes in the finished product. The cost is $5 per sensor. Last month LLZ acquired a company in Mexico that makes the sensors for $1 per sensor. LLZ plans to move all sensor manufacturing operations to the factory in Mexico. What is the movement of this cost saving process called?
Options
- AReengineering
- BOffshoring
- CRationalizing
- DOutsourcing
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