Generally Speaking,procurement Can Have a Greater Impact on the Net

question 8

Multiple Choice

Generally speaking,procurement can have a greater impact on the net income of a company than most other departments.This is due to the fact that:

• A)manufacturing relies on purchasing to identify high quality suppliers
• B)suppliers want to reduce their prices to their customers
• C)marketers don't care about net income
• D)purchased materials and supplies frequently represent the largest costs in a company

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Definitions:

Marginal Cost

The cost related to creating an additional unit of a product or service.

Above Marginal

This is not a standard economic term and lacks a universally recognized definition. NO

Competitive Firms

Businesses that operate in markets with many sellers, where each seller has no control over the market price and must accept the market price for its products or services.

Positive Profits

A situation where a business or individual earns more money than expended, indicating financial success and sustainability.