When a company is outsourcing a process,resources are freed up so they can be put to another use.The alternative use is considered to be
A)an opportunity cost.
B)a sunk cost.
C)a outsource windfall.
D)a fixed cost.

Question

Quizplus · Accepted Answer

The term "opportunity cost" refers to the value of the next best alternative foregone when a particular choice is made. In this case, the resources that are freed up as a result of outsourcing can be used for another purpose or project, which represents an opportunity that must be weighed against the cost of outsourcing.

When a Company Is Outsourcing a Process,resources Are Freed Up