Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS Exam L6M9 Topic 2 Question 4 Discussion

Actual exam question for CIPS's L6M9 exam
Question #: 4
Topic #: 2
[All L6M9 Questions]

White Moon Ltd, a manufacturing organisation, is considering outsourcing transportation. What would be a reason for doing this?

Show Suggested Answer Hide Answer
Suggested Answer: B

Outsourcing replaces fixed costs with variable costs---companies only pay for what they use, rather than maintaining their own fleet.

Option A is incorrect because gaining market access is a benefit of offshoring, not outsourcing.

Option C is incorrect as there is no mention of shareholders in the scenario.

Option D is incorrect since the inefficiency trap relates to offshoring.

(LO 1.2, See p.44)


by Eric at Mar 09, 2025, 10:35 AM

Limited Time Offer

25%

Off

Get Premium L6M9 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Isadora
5 months ago
I think both reasons are valid, it just depends on the company's goals.
upvoted 0 times
...
Cletus
5 months ago
Yes, that's true. Lowering costs can improve profitability.
upvoted 0 times
...
Cordell
6 months ago
But what about decreasing fixed costs? Wouldn't that be a good reason too?
upvoted 0 times
...
Isadora
6 months ago
I agree with Cletus, accessing new markets can help the company grow.
upvoted 0 times
...
Audrie
6 months ago
Ooh, emerging markets! That could be a game-changer. Gotta keep those options open.
upvoted 0 times
Alfred
5 months ago
D) To avoid the inefficiency trap
upvoted 0 times
...
Dorothy
5 months ago
B) To decrease fixed costs
upvoted 0 times
...
Isadora
5 months ago
A) To gain better access to emerging markets
upvoted 0 times
...
...
Josephine
6 months ago
Pleasing shareholders? Pfft, I think they should be focusing on what's best for the business, not just the investors.
upvoted 0 times
...
Maybelle
6 months ago
Avoiding the inefficiency trap is key. Gotta stay ahead of the game, you know?
upvoted 0 times
Naomi
5 months ago
D) To avoid the inefficiency trap
upvoted 0 times
...
Willie
5 months ago
C) To please shareholders
upvoted 0 times
...
Lisbeth
5 months ago
B) To decrease fixed costs
upvoted 0 times
...
Lacresha
5 months ago
A) To gain better access to emerging markets
upvoted 0 times
...
...
Cletus
6 months ago
I think the reason could be to gain better access to emerging markets.
upvoted 0 times
...
Socorro
6 months ago
Outsourcing transportation could definitely help White Moon Ltd decrease their fixed costs. That's a smart move in my book!
upvoted 0 times
Cammy
5 months ago
B) To decrease fixed costs
upvoted 0 times
...
Arlette
5 months ago
A) To gain better access to emerging markets
upvoted 0 times
...
...

Save Cancel