Which One of the Following Statements Correctly Represents a Benefit

question 48

Multiple Choice

Which one of the following statements correctly represents a benefit of centralized buying?

• A) Local managers have more control over their business.
• B) Purchases and production schedules are meshed more easily.
• C) Customization to local preferences is simplified.
• D) Increased buying power can result in significant savings in purchasing costs.

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Definitions:

Money Supply

The total amount of monetary assets available within an economy at a specific time, including cash, coins, and balances held in bank accounts.

Price Level

The broad-based average price across the spectrum of goods and services in the economy.

Real Income

Income of individuals or nations adjusted for inflation, reflecting the actual purchasing power.

Velocity of Money

The rate at which money is exchanged from one transaction to another and used to purchase goods and services, reflecting the economy's activity level.