Supply Management Frequently Must Assume a Less Active Role in Services

question 16

True/False

Supply management frequently must assume a less active role in services procurement than when purchasing materials.

---

Definitions:

Gain/Loss

The financial result that occurs when the selling price of an asset is higher or lower than its purchase price.

Straight Line Basis

A method of calculating depreciation and amortization that allocates an equal portion of an asset's cost to each period in its useful life.

Salvage Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Payroll Accrual

The process of recording salaries and wages that have been earned by employees but not yet paid by the company.