"Issues of product costing are unimportant for virtual organisations that outsource production operations."

The topic states that is product costing important for virtual organisations that are outsourcing their production operations. Virtual organisations are those corporation that operate in the world of e-business or e-commerce. A virtual organisation can be defined as "Composed of several business partners sharing costs and resources for the purpose of producing a product or service...can be temporary...or it can be permanent. Each partner contributes complementary resources that reflect its strengths, and determines …

…competition as enterprises exploit scale and cost disparities on a global basis at an ever-increasing rate. Outsourcing is observed from both, positive and negative side that are crucial when choosing business organisation structure. Additionally, there are more important technological tools vitally need by virtual organisations. "Outsourcing is no longer a pure accounting calculation, the dangers of getting it wrong are considerable." Simon Sijbrands, Beyond transaction processing: is outsourcing right for the financial services industry? Pg 4.