What Is the Term Used to Identify the Ability of a Business

question 48

Multiple Choice

What is the term used to identify the ability of a business to recover from an event that negatively impacts the supply chain?

• A)event management
• B)risk recovery
• C)supply chain visibility
• D)resiliency
• E)risk pooling

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Definitions:

Lower of Cost

An accounting rule where inventory is recorded at the lower of either its acquisition cost or market value at reporting time.

Allowance Method

An accounting technique used to estimate and account for doubtful debts, reducing accounts receivable to a realistic amount.

Direct Method

A way of presenting the cash flow statement where actual cash flows from operating activities are listed directly.

Inventory Loss

A reduction in inventory count due to theft, spoilage, or other discrepancies not related to sales.