If a Supplier Has High Power What Can It Do

question 323

Multiple Choice

If a supplier has high power what can it do to influence its industry?

• A)Charge higher prices.
• B)Shift costs to industry participants.
• C)Limit quality or services.
• D)All of the above.

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Definitions:

Gross Profit

Gross Profit is the financial metric reflecting the difference between sales revenue and the cost of goods sold (COGS), indicating the efficiency of a company in managing its production and labor costs.

Standard Costing System

A cost accounting method that assigns expected costs to each unit of product to help managers control production costs.

Interim Financial Report

Financial statements that are issued for periods shorter than a fiscal year, typically quarterly, providing investors and others with an update on a company's financial health.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the profitability of a company's core activities.