Indirect Materials in One Industry Are Purchased As-Needed Using a Practice

question 3

Multiple Choice

Indirect materials in one industry are purchased as-needed using a practice called ________.

• A)Private exchanges
• B)Horizontal exchanges
• C)Spot sourcing
• D)Vertical exchanges

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Definitions:

Premium

The amount paid for an option or insurance policy over its intrinsic value or the amount by which the price of a bond exceeds its face value.

Exercise Price

The price level at which an option owner has the right to carry out a purchase (for calls) or a sale (for puts) of the asset in question.

Premium

The amount by which the price of a financial instrument or asset exceeds its face value or the cost above the normal or standard rate.

Stock Price

The cost of purchasing a share of a company in the stock market, which fluctuates based on supply and demand dynamics.