Arranging for Other Organizations to Perform Supply Chain Functions That

question 82

Multiple Choice

Arranging for other organizations to perform supply chain functions that were previously performed internally is known as _____.

• A) vertical integration
• B) outsourcing
• C) amortization
• D) enterprise resource planning

Understand the balance between security and efficient global commerce flow.

Understand the membership and basic principles of NAFTA.

Recognize the distribution of the world population among countries.

Describe the contributions of effective supply chains to business success.

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Definitions:

Trade-In Allowance

The amount a seller provides to a buyer towards the purchase of a new item by trading in an older model.

Commercial Substance

A concept in accounting indicating that a transaction significantly changes the economic situation of a business, justifying a change in the financial statements.

Accumulated Depreciation

The aggregate depreciation charges applied to a fixed asset from when it first came into operation.

Commercial Substance

A concept in accounting that occurs when the future cash flows or the economic circumstances of a transaction change as a result of the transaction.