Which of the Following Is Generally Not True About Supply

question 16

Multiple Choice

Which of the following is generally not true about supply management and the bottom line?

• A) Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom line
• B) A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line
• C) Outsourcing allows firms to focus on their core competencies, which reduced potential for waste, which then can improve the bottom line
• D) A dollar saved in materials cost is usually considered a dollar increase in profit, which directly translates into bottom line savings
• E) Supply management can work collaboratively with suppliers to discover opportunities to lower costs, which ultimately improves the bottom line

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Definitions:

Collagen

A structural protein found in the skin, bones, and connective tissues, providing strength and elasticity.

Immunity

The body's ability to resist or defend against infectious diseases and foreign substances, involving both specific and nonspecific components like antibodies and white blood cells.

Hydroxyapatite

Mineral with the empiric formula 3 Ca3(PO4)2 ∙ Ca(OH)2; the main mineral of bone and teeth.

Collagen

A protein that is the primary structural component of connective tissues in animals and the most abundant protein in mammals.