Supply Management

question 13

Multiple Choice

Supply management:

• A)Only focuses on direct materials that are used in a company's products.
• B)Is essential for an organization to attain its strategic objectives.
• C)Is only involved with supplier selection.
• D)Should always strive for the lowest purchase price.

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Definitions:

Discount Factor

A multiplier used to calculate the present value of future cash flows; reflects the time value of money.

Invested Today

Refers to the allocation of resources, such as capital or time, in the present with the expectation of future returns.

Guaranteed Rate

An interest rate or return that is promised by a lender or issuer to an investor for a fixed period.

Discount Factor

A multiplicative factor used in discounted cash flow (DCF) analysis to calculate the present value of future cash flows.