All the Following Are Approaches Used in Risk Pooling Within

question 16

Multiple Choice

All the following are approaches used in risk pooling within a supply chain except

• A)reducing the number and variety of parts.
• B)creating flexible capacity.
• C)encouraging large orders.
• D)combining inventories from multiple locations into one location.

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Definitions:

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate operating cash flow.

Net Income

A company's overall income after deducting all expenses and taxation from gross revenue.

Accumulated Depreciation

The total depreciation amount that has been charged to expense a fixed asset over its useful life to reflect wear and tear, aging, or obsolescence.

Operating Activities

Day-to-day actions and transactions that are central to the primary business operations, including revenue and expense activities.