Which of the Following Are Activities of the Purchasing Function

question 45

Multiple Choice

Which of the following are activities of the purchasing function? 

• A) Selecting the best possible supplier 
• B) Recruiting staff 
• C) Distributing goods and services 
• D) Financial control

Understand the concept of economic costs including explicit and implicit costs.

Calculate economic profit and distinguish it from accounting profit.

Identify the components of total revenue and total cost to determine profit.

Understand opportunity costs and how they influence business decisions.

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Definitions:

Ordinary Annuity

Unchanging installments paid at the finale of successive terms over a fixed duration.

Deferred Annuity

An annuity contract that delays payments until the investor elects to receive them, usually at retirement.

Ordinary Annuity

Periodic equal distributions made at the terminus of each phase throughout a determined period.

Ordinary Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.