In Which of the Following Cases Will the Indirect Order

question 49

Multiple Choice

In which of the following cases will the indirect order plan of organizing information be most effective?

• A) in an automated email response to emails sent to a work email ID
• B) in a letter to a government official requesting the renewal of one's work permit
• C) in an email to a supplier asking for a fresh supply of raw materials
• D) in an email to a supplier about the organization's plan to start using a different supplier
• E) in an email containing the weekly newsletter, which describes the activities of the organization

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Definitions:

Credit Period

The time frame allowed by a creditor for a debtor to pay an outstanding bill or loan without incurring penalties or interest.

Cash Discount

An incentive offered by sellers to purchasers for paying an invoice promptly, usually defined as a percentage reduction in the invoice amount.

EOQ Model

Economic Order Quantity model; an inventory management method used to determine the optimum order quantity that minimizes the total inventory holding costs and ordering costs.

Shortage Costs

Costs that fall with increases in the level of investment in current assets.