Which of the Following Is a Vital Indicator When Deciding

question 3

Multiple Choice

Which of the following is a vital indicator when deciding whether a payment should be made to a supplier?

• A)The manager's authorisation and agreement.
• B)The receipt of a receiving report from the warehouse department.
• C)Goods are received in sufficient quantity and good quality.
• D)The supplier has provided the company with an invoice.

Understand the relationship between supply and demand and its impact on price and quantity sold.

Recognize the role of equilibrium in the market and how it is established.

Identify factors that cause shifts in supply and demand curves, and understand their effects on market outcomes.

Appreciate the impact of governmental policies such as price floors, ceilings, and rent controls on market equilibrium.

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Definitions:

Inventory Period

The average time that goods remain in inventory before being sold, reflecting a company's efficiency in managing inventory.

Receivables Period

The amount of time it takes for a company to collect payments owed by its customers after a sale has been made, typically measured in days.

Inventory

The goods and materials a business holds for the ultimate goal of resale or production.

Cost of Goods Sold

Material and labor costs that are directly attributable to the manufacturing of a company’s products.