When General Motors Considers Making Its Own Automotive Parts,Delphi Automotive

question 87

Multiple Choice

When General Motors considers making its own automotive parts,Delphi Automotive Supply Company would be concerned with the

• A) bargaining power of suppliers.
• B) bargaining power of buyers.
• C) rivalry among existing competitors.
• D) threat of substitutes.
• E) threat of new entrants.

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Definitions:

Labor Costs

The total sum of all wages, benefits, and taxes paid to employees by an employer for work performed.

Period Costs

Expenses that are not directly tied to production activity and are charged to the period in which they are incurred.

Balance Sheet

A financial statement that shows the assets, liabilities, and equity of a company at a specific point in time, illustrating its financial position.

Income Statement

A report that outlines an organization's earnings and costs for a set period, culminating in a net gain or shortfall.