Which of the Following Is NOT a Strategy Level Decision

question 2

Multiple Choice

Which of the following is NOT a strategy level decision to be made in the expenditure cycle?

• A)Whether the organisation should consolidate purchases across units to obtain optimal prices.
• B)How IT can be used to improve both the efficiency and the accuracy of the inbound logistics function.
• C)Identifying where inventories and supplies should be held.
• D)Determining the optimal level of inventory and supplies to carry.

Understand the operational aspects of a business, including manufacturing, facilities, and labor force requirements.

Comprehend the role of financial documents in business planning, including cash-flow statements, balance sheets, and profit-and-loss statements.

Realize the significance of break-even analysis in financial planning.

Identify common mistakes in writing business plans and how to avoid them.

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Definitions:

Contractual Obligation

A duty or commitment that one party is legally required to perform as per the terms of a contract.

Market Price

The current price at which an asset or service can be bought or sold in a given market.

Added Cost

Additional expenses incurred beyond the initially planned or budgeted amounts.

Fully Discharged

The status of having completely fulfilled a responsibility, duty, or debt, releasing the subject from further obligations.