Supply Strategies That Are Based on Changes in Demand and Supply

question 10

Multiple Choice

Supply strategies that are based on changes in demand and supply are known as:

• A)assurance-of-supply strategies.
• B)risk-management strategies.
• C)cost-reduction strategies.
• D)environmental-change strategies.
• E)supply chain support strategies.

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Definitions:

Fair Value Adjustment

A financial accounting process of adjusting the fair market value of assets and liabilities.

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and thus, the loss has not been realized.

Gain on Sale of Investment

The profit realized from selling an investment for more than its purchase cost.

Fair Value

The estimated market value of an asset or liability based on current prices in an open and competitive market.