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:

Tax

Mandatory financial charges imposed by a government on individuals, corporations, or other entities to fund public expenditures and services.

Sellers

Individuals or entities that offer goods or services in exchange for payment or other forms of compensation.

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Swiss Chocolate

High-quality chocolate produced in Switzerland, known globally for its superior craftsmanship and ingredients.