Transactions with and Amounts Receivable from or Payable to a Key

question 27

Multiple Choice

Transactions with and amounts receivable from or payable to a key management person and their related parties are excluded from additional disclosures when:

• A) The transactions occur within a normal employee, customer or supplier relationship on terms and conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with an unrelated person.
• B) The information about them does not have a potential to affect adversely decisions about the allocation of scarce resources made by the users of the financial report, or the discharge if accountability by the key management person.
• C) These are trivial or domestic in nature.
• D) All of the given answers.
• E) The transactions occur within a normal employee, customer or supplier relationship on terms and conditions no more favourable than those that it is reasonable to expect the entity would have adopted if dealing with an unrelated person and the information about them does not have a potential to affect adversely decisions about the allocation of scarce resources made by the users of the financial report, or the discharge if accountability by the key management person.

Understand how and why businesses offer credit to their customers.

Recognize the purpose and components of public relations within a business context.

Grasp the factors that influence the setting of product prices.

Understand the composition and significance of the promotional mix in marketing.

---

Definitions:

Optimal Order

The most efficient or cost-effective quantity of goods to order, taking into account factors such as demand, holding costs, and ordering costs.

Available Capacity

The amount of production capability or service availability that can be provided over a certain period of time.

Multiple Products

The strategy or situation of offering or managing a variety of different products instead of focusing on a single offering.

Postponement

A supply chain strategy that delays product customization or final assembly until customer orders are received, to reduce inventory costs and increase flexibility.