Manitoba University Is Buying a Distance Learning System

question 52

Multiple Choice

Manitoba University is buying a distance learning system.Previously,the school had no distance learning technology.For Manitoba University this represents a(n) __________ situation.

• A) adapted buy
• B) modified rebuy
• C) straight rebuy
• D) new buy
• E) generic buy

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Definitions:

Merchandise

Goods that are bought and sold in the course of business, often referred to in the context of retail or wholesale trading.

Lower of Cost or Market

An accounting principle stating that inventory should be recorded at either its historical cost or its market value, whichever is lower.

Inventory

Items such as raw materials, work-in-progress, and finished goods that a company holds for the purpose of sale in the ordinary course of business.

Inventory Management

The systematic approach to ordering, storing, and using a company's inventory, including raw materials, components, and finished products.