Which of the Following Is an Example of an Internal

question 89

Multiple Choice

Which of the following is an example of an internal transaction cost?

• A) The cost of searching for a contract manufacturer
• B) The cost of signing a contract with a supplier
• C) The cost of buying raw materials
• D) The cost of maintaining a production unit

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Definitions:

Service Organizations

Companies or entities that provide intangible products or services to customers or clients.

Percent of Revenues

A financial metric that represents a portion or ratio of a company's revenues, often used to measure the relative size or importance of a particular cost or income stream.

Supply Chain Management

The oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.

Systems Approach

A holistic analysis method that views a system as an interconnected set of parts that work together to accomplish specific goals.