Goods Purchased for Future Use in the Business, Such as Supplies

question 7

Multiple Choice

Goods purchased for future use in the business, such as supplies, are recorded as

• A)assets.
• B)revenues.
• C)expenses.
• D)liabilities.

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Definitions:

Overhead

The ongoing administrative and operational costs not directly tied to the production of goods or services in a business.

Operating Efficiency

The ability of an organization to minimize its input costs while maximizing its output without compromising quality.

Boundaryless Sourcing

A business strategy that involves procuring goods or services from any supplier globally without geographical restrictions.

Outsourcing

The practice of hiring third-party vendors to perform services or produce goods that were previously handled in-house.