When Choosing an Appropriate Vendor, Production Managers Consider All of the Following

question 114

Multiple Choice

When choosing an appropriate vendor, production managers consider all of the following EXCEPT ______.

• A) dispatching
• B) warranties on purchases
• C) delivery dependability
• D) services from competing companies

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Definitions:

Net Income

The amount of earnings left after all expenses, including taxes and operating costs, have been subtracted from total revenue; a measure of company profitability.

Operating Expenses

These are costs associated with the day-to-day operations of a business, excluding direct production costs but including items like rent, utilities, and administrative salaries.

Periodic Inventory System

An accounting method where inventory levels and cost of goods sold are updated at specific intervals, rather than continuously.

Transactions

Financial events or exchanges between parties that have a monetary impact on the financial statements of a business.