Which Factors Have a Major Influence on Supply's Level in the Organization

question 4

Multiple Choice

Which factors have a major influence on supply's level in the organization:

• A)the credentials of the supply personnel;the geographical location of the supply base;the ratio of purchased material and services costs to total costs or total income.
• B)industry sector;the geographical location of the supply base;the ratio of purchased material and services costs to total costs or total income.
• C)the extent to which supply and suppliers can provide competitive advantage;the ratio of purchased material and services costs to total costs or total income.
• D)the nature of the products or services acquired;the extent to which supply and suppliers can provide competitive advantage;the ratio of purchased material and services costs to total costs or total income.
• E)the credentials of the supply personnel;industry sector;the nature of the products or services acquired.

Understand the implications of agreements and disputes in contract law.

Explain the role of quantum meruit in contract law.

Appreciate the balance between the freedom of contract and legal constraints.

Understand the principle of promissory estoppel and its relationship with the concept of consideration in contract law.

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product and can be easily traced to it.

Job 101

A specific task or project identified by a numerical code, often used in job costing systems to track costs and progress.

Predetermined Overhead Rate

A rate calculated before a period begins, based on the estimated overhead costs and estimated activity base, used to allocate overhead costs to products or job orders.

Manufacturing Overhead Account

An account that accumulates all indirect manufacturing costs, such as utilities, rent, and salaries for managers.