A New Task Purchasing Decision Involves

question 40

Multiple Choice

A new task purchasing decision involves:

• A)re-ordering from the same vendor.
• B)ordering new materials from the same vendor.
• C)requesting bids from multiple vendors since the contractual period with the current vendor has expired.
• D)buying an expensive good or service for the first time.

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Definitions:

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.

Pay Back

The process of returning or repaying borrowed funds, especially the principle amount of a loan.

Accounting Break-Even

The point at which total costs and total revenues are exactly equal, resulting in neither profit nor loss.