How Is the Authorization for Issuing Materials Made When an Effective

question 77

Multiple Choice

How is the authorization for issuing materials made when an effective system of internal control is in place?

• A)by utilizing pre-numbered materials requisition slips
• B)by acquiring the materials from the delivery driver when the shipment is received from a trucking company
• C)by receiving authorization to begin a job from the production supervisor
• D)by approval from the accounting department

Recognize the importance of creating and sustaining competitive advantages to capture value in a market.

Understand the concept of platform strategies and the importance of complementary innovation.

Grasp the basis of the Resource-Based View (RBV) including resource immobility and heterogeneity.

Analyze the factors influencing supplier and buyer power within markets.

---

Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, both explicit and implicit.

Total Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums, over a certain period of time.

Profit-Maximizing

The process or strategy of adjusting production and operations to generate the highest possible profit.

Total Profit

Total profit is the financial gain made by a business after subtracting all expenses from the total revenue generated from sales and other sources.