An Item Is Considered Material If

question 25

Multiple Choice

An item is considered material if:

• A)it facilitates comparison with the financial statements of another company in the same industry.
• B)its inclusion in the financial statements would cause a statement user to change a decision.
• C)its dollar value is greater than 10% of net income.
• D)it is accounted for using a treatment that is not normally allowed by generally accepted accounting principles.

Recognize the importance and scope of supplier development initiatives.

Grasp the concepts and implications of requests for information (RFI), quotations (RFQ), and proposals (RFP) in supplier selection processes.

Comprehend the use of portfolio or quadrant analysis in developing supply strategies.

Appreciate the complexities of environmental sustainability in supply chain management.

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Definitions:

Good Faith

A principle referring to the honest intention to act without taking an unfair advantage over another party.

Fair Dealing

A legal doctrine allowing the limited use of copyrighted material without requiring permission from the rights holders, typically for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.

State Law

The body of law enacted by the legislative bodies of individual states in the United States, as opposed to Federal law.

Duration

The length of time during which an event occurs or a condition persists.