How does outsourcing allow ABC to focus on core activities?

• A. It enables management to concentrate on concrete production rather than waste disposal.
• B. It increases the burden of compliance on ABC staff.
• C. It reduces production capacity due to outsourcing.
• D. It complicates scheduling of manufacturing.

Answer: (A)

Outsourcing non-core activities frees management to focus on what the business does best. By handing waste disposal to an external specialist, ABC can devote more time and resources to production, its main value-creating activity. This shift helps improve efficiency, planning, and quality in production since managerial attention is no longer tied up with non-core tasks. The other options don’t fit because outsourcing waste disposal doesn’t inherently increase compliance burden or reduce production capacity, and it doesn’t inherently make scheduling more complicated; when managed well it can actually simplify planning by creating clearer responsibilities and timelines.