A/An _____ Is Typically Organized Around Specific E-Sourcing Suite Modules

question 55

Multiple Choice

A/An _____ is typically organized around specific e-sourcing suite modules that interact with different elements of the purchasing database, elements of the ERP system, and integration of data obtained through external EDI or web-based communications with suppliers or customers.

• A)EDI system
• B)SRM system
• C)third-party marketplace
• D)sell-side system
• E)buy-side system

Distinguish between replacement and new venture projects in terms of cash flow analysis.

Define and calculate opportunity costs in the context of capital budgeting.

Recognize the role of terminal values and terminal cash flows in project evaluation.

Assess project proposals considering estimating inaccuracies and subjective benefits.

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Definitions:

Absorption Costing

A financial methodology that includes every cost related to producing a product—direct materials, direct labor, and both kinds of overhead expenses (variable and fixed), into the product’s final cost.

Ending Finished Goods

Ending Finished Goods are the inventory of completed products that are available for sale at the end of an accounting period.

Net Operating Income

This is the profit a company makes from its operations, after all operating expenses have been subtracted from revenues but before taxes and interest are deducted.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much revenue is contributing to fixed expenses and net income.