Which Three Supplier Types Should Be Examined in an Environmental

question 34

Multiple Choice

Which three supplier types should be examined in an environmental forecast?

• A) land, labor, and capital
• B) resources, labor, and capital
• C) raw materials, finances, and entrepreneurship
• D) equity, assets, and perishables

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Definitions:

Fixed Costs

Outgoings such as rent, salaries, and premiums for insurance that are unaffected by the quantity of sales or production.

Special Orders

Custom orders that typically differ from standard products and may have unique pricing or production requirements.

Variable Costs

Expenses that fluctuate in direct proportion to production or sales figures, like direct labor and raw materials.

Variable Costing

A costing method that only includes variable production costs in the cost of goods sold and treats fixed overhead as a period expense.