Which of the Following Is NOT an Example of a Straight

question 115

Multiple Choice

Which of the following is NOT an example of a straight rebuy?

• A)renewing subscriptions to trade journals
• B)purchasing a new computerized inventory system to facilitate the implementation of a just-in-time (JIT) inventory system
• C)ordering glass sheets from the firm's usual supplier
• D)restocking the glue needed to attach decorative trim to the product
• E)buying cleaning supplies from the list left by the maintenance staff

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Definitions:

Acceptable Return

The minimum profit or benefit expected by an investor for the risk taken on an investment.

Income from Operations

Financial performance metric that shows earnings from normal business activities, excluding effects of interest and taxes.

Transfer Price

The price at which goods and services are sold between subdivisions, affiliates, or subsidiaries within the same organization.

Variable Cost

Variable costs are expenses that vary directly with the level of production or business activity, such as raw materials and direct labor.