Which of the Following Best Explains 'Purchasing Effectiveness

question 53

Multiple Choice

Which of the following best explains 'purchasing effectiveness'? 

• A) The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
• B) This refers to the relationship between planned and actual costs. 
• C) The savings made against budget allocation. 
• D) The longer term consequences of the activity.

---

Definitions:

Invoice Price

The price that appears on the invoice from the manufacturer to the dealer, often not reflecting the actual price a consumer pays.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon payment) over the bond's lifetime, in addition to returning the principal at maturity.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all payments and the face value.

Intrinsic Value

The true, inherent, and underlying value of an asset, independent of its market price.