Stagistics and V3 Technologies, Two Top Vendors of Supply Chain

question 24

Multiple Choice

Stagistics and v3 Technologies, two top vendors of supply chain management software, have recently launched their own online trading exchange aimed at increasing the ease with which their customers can distribute products and ideas.Both of these organizations provide exceptional, ongoing service to their business customers.These two organizations hope to benefit from _____.

• A)customer relationship management
• B)societal marketing concept
• C)customer orientation
• D)product valuation

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Definitions:

Variable Costing

Variable Costing is a costing method that only includes variable costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed manufacturing overhead.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much contributes to covering fixed costs and generating profit.

Operating Income

A measure of a company's profitability from its regular business operations, excluding income and expenses from unusual or non-operational activities.

Absorption Costing

An accounting method that includes all manufacturing costs (both fixed and variable) in the cost of a product.