When Making a Decision About Global Sourcing, Which of the Following

question 71

Multiple Choice

When making a decision about global sourcing, which of the following would be a cost consideration?

• A) Retailer's differentiation from competitors
• B) Vendor negotiation fees
• C) Retailer inventory carrying costs
• D) Vendor employees' working conditions
• E) Vendor factory standards

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Definitions:

Straight-Line Method

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Discount on Bonds Payable

Discount on bonds payable represents the difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Premium on Bonds Payable

The excess of a bond's selling price over its principal amount.

Debenture Bonds

Fixed-interest unsecured loans issued by companies, backed only by the creditworthiness and reputation of the issuer, rather than by a lien on any specific asset.