The Purchasing of Goods and Services That Are Not Part

question 102

Multiple Choice

The purchasing of goods and services that are not part of finished goods is known as

• A) overhead.
• B) indirect procurement.
• C) peripheral purchasing.
• D) e-procurement.
• E) fixed costs.

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Definitions:

Composition

The way in which different components or elements are organized or arranged.

Fixed Cost

Expenses that do not change in proportion to the level of goods or services produced by a business.

Author Royalties

Author royalties are payments made by publishers to authors for the right to use, produce, or sell the authors' creations, usually a percentage of sales.

Fixed Cost

Expenses that do not change in relation to the level of goods or services produced over a certain period.