Criteria Used by an Entity to Assess the Probability That

question 42

Multiple Choice

Criteria used by an entity to assess the probability that taxable profit will be available against which unused tax losses can be utilised include:

• A)whether the unused tax losses result from identifiable causes that are unlikely to recur.
• B)whether it is probable that the entity will have taxable profits before the unused tax losses expire.
• C)whether permission has been received from the Taxation Authorities to carry forward tax losses.
• D)whether the entity has unused tax losses relating to the same taxation authority and the same taxable entity, which will result in taxable amounts against which the unused tax losses can be utilised before they expire.

Appreciate the role of product fill rate and order fill rate in measuring supply chain performance.

Recognize the strategies for managing supply chain risks such as demand volatility and supply uncertainties.

Grasp the concept of echelon inventory and its significance in supply chain visibility.

Understand the concepts of safety inventory and its impact on fill rate and cycle service level.

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Definitions:

Incremental Variable Cost

Describes the additional costs incurred when producing one extra unit of a product, including expenses related to materials and labor directly associated with the production.

Incremental Fixed Cost

Additional fixed costs that are incurred when a company expands its operations or production levels beyond the current scope.

Order Size

The quantity of goods or services purchased in a single transaction or order, which can impact volume discounts, shipping costs, and inventory management.

Trade-off

A situation that involves losing one quality or aspect of something in return for gaining another quality or aspect.