What cost advantage does ABC gain from outsourcing hazardous waste disposal?

• A. It reduces the need to invest in expensive disposal equipment and employee training.
• B. It yields no cost advantage over in-house disposal.
• C. It increases disposal fees across the board.
• D. It creates hidden costs that negate any savings.

Answer: (A)

Outsourcing hazardous waste disposal primarily reduces capital and ongoing training costs. By sending waste to a specialist provider, ABC avoids purchasing and maintaining expensive disposal equipment, as well as the staff training, safety programs, and regulatory compliance processes needed to handle hazardous waste in-house. The vendor brings its own licensed facilities, specialized equipment, and trained personnel, spreading those fixed costs over many clients and trips, which lowers ABC’s per‑unit and ongoing expenses. This shift often leads to more predictable, lower total costs than managing disposal internally.

Other options don’t fit because the savings aren’t typically non-existent, across-the-board higher, or entirely negated by hidden costs. Outsourcing usually offers some cost reduction through scale and specialization, even if there are some service fees.