Question

When a company outsources some of its work / activities currently done by itself, it ultimately shifts the cost structure of the company. In most cases this shift entails:

Answer 1

Outsourcing Company Activities

The shift in the cost structure of the company entails:

the elimination of most fixed costs and making variable costs to become more prominent.

Step-by-step explanation:

A company's cost structure describes the relative proportions of fixed and variable costs which the company incurs in its business activities. Outsourcing is a cost-driven strategy that involves the use of outside vendors to perform services and create goods that were traditionally produced in-house, thereby eliminating some employees and facilities, and thus, reducing cost.