Which Sourcing Strategy Is Particularly Common When the Products Being

question 123

Multiple Choice

Which sourcing strategy is particularly common when the products being sourced are commodities?

• A) few suppliers
• B) many suppliers
• C) keiretsu
• D) vertical integration
• E) virtual companies

---

Definitions:

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales commissions, and store operations.

Factory Overhead Rate

A measure used to assign the total indirect manufacturing costs to individual units of production, often based on a standard costing system or activity-based costing.

Machine Hours

A measure of the total time that machines are operating during a specific period.

Factory Overhead

Refers to the indirect costs associated with manufacturing, excluding direct materials and direct labor.