Which of the Following Is True of Purchasing

question 5

Multiple Choice

Which of the following is true of purchasing

• A) It can have a significant impact on total supply chain costs.
• B) It is critical to satisfy employees' needs and expectations.
• C) The delivery of goods and services is the responsibility of the purchasing function of a supply chain.
• D) The principal goal of purchasing is to source products from a single supplier to avoid capacity risks.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers where no single entity can dictate prices.

Average Revenue

The amount of revenue a company receives per unit of output sold, calculated by dividing total revenue by the quantity of goods or services sold.

Marginal Revenue

Additional income received from selling one more unit of a product or service.

Total Revenue

The total amount of money a firm receives from its sales of goods or services, calculated by multiplying the price per unit by the number of units sold.