Which of the Following Best Explains 'External Sustainability Standards

question 50

Multiple Choice

Which of the following best explains 'external sustainability standards'? 

• A) These are used the general codes of conduct and business values of the organization and need to be signed by the supplier. 
• B) These are used to allow procurement professional to check the degree to which suppliers comply with their sustainability requirements through self-assessment and/or supplier sustainability audits. 
• C) These are used to ensure that corrective actions are put in place by suppliers. 
• D) These are used to inform and are based on external standards and norms.

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Definitions:

Variable Expense Ratio

A metric that compares variable expenses (costs that change with production levels) to total sales, indicating how much revenue is consumed by variable costs.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating the contribution towards covering fixed costs and generating profit.

Contribution Format

An income statement variant that divides expenses into variable and fixed groups, emphasizing the contribution margin.

Break-even Point

The point at which total costs and total revenue are equal, leading to neither profit nor loss.