Asked by Langle Eunice on May 26, 2024
Verified
A firm that purchases peak production capability from other companies is using subcontracting.
Subcontracting
The practice of assigning or outsourcing part of the contractual obligations or work to another party, often to specialize or expedite processes.
- Recognize the use of subcontracting to manage peak production capabilities.
Verified Answer
RA
Raven ArcangelJun 01, 2024
Final Answer :
True
Explanation :
Subcontracting involves a company outsourcing parts of its production process to other companies or suppliers, which can include purchasing peak production capability from other companies.
Learning Objectives
- Recognize the use of subcontracting to manage peak production capabilities.
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