Which of the Following Statements Is True of a Supply

question 13

Multiple Choice

Which of the following statements is true of a supply chain?

• A) All members of the supply chain of a firm must have close geographical proximity.
• B) Every supply chain should include suppliers, manufacturers, distributors, retailers, and customers.
• C) Each organization in a chain is connected to just one company up and down the chain.
• D) A supply chain includes transportation companies, warehouses, and inventories.

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Definitions:

Overhead Cost

Fixed and variable expenses associated with operating a business that are not directly linked to creating a product or service, such as administrative expenses and maintenance costs.

Activity-Based Costing

A cost accounting approach that assigns costs to products or services based on the activities involved in their production.

Processing Costs

Expenses incurred in the process of turning raw materials into finished products, including labor and overhead.

Equipment Depreciation

The allocation of the cost of tangible assets over its useful life, reflecting wear and tear, obsolescence, or permanent decline in value.