When a Firm Does Not Have Core Competencies in an Area

question 48

Multiple Choice

When a firm does not have core competencies in an area needed to produce certain products, it may choose to rely upon a(n) ?

• A) Dependent manufacturer
• B) Allied manufacturer
• C) Contract manufacturer
• D) Conscripted manufacturer

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Definitions:

Merchandiser

A business entity engaged in selling goods directly to consumers or other businesses.

Cost Flow

The manner in which costs move through a firm, from initial acquisition of raw materials to final sale of finished goods.

Single-Step Income Statement

An income statement format that lists all revenues and then deducts all expenses to find the net income with only one subtraction.

Multiple-Step Income Statement

A detailed income statement that separates operational revenue and expenses from non-operational ones, presenting a clear view of a company’s operational efficiency.