Which Statement Regarding Efficient Supply Chains Is Most Accurate

question 207

Multiple Choice

Which statement regarding efficient supply chains is most accurate?

• A) Efficient supply chains traditionally use inexpensive but slower modes of transportation.
• B) Efficient supply chains use common platforms and common components across several products.
• C) Efficient supply chains rely on maintaining large geographically dispersed inventory warehouses.
• D) Efficient supply chains traditionally use expensive, but faster, modes of transportation.
• E) Efficient supply chains emphasize economies of scale by increasing the variety of system configurations offered.

Grasp the impact of inventory transactions on the Income Statement and Balance Sheet.

Recognize the accounting treatment of inventories and revenue recognition under IFRS and GAAP.

Understand and calculate the components of an income statement, including sales revenue, cost of goods sold, gross profit, operating expenses, and net income.

Calculate net purchases and cost of goods purchased under a periodic inventory system.

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Definitions:

Arbitrage Opportunities

Arbitrage Opportunities arise when a financial instrument, or combination of instruments, can be bought and sold simultaneously in different markets for a risk-free profit due to price discrepancies.

Factor Betas

Measures of a security's sensitivity to various risk factors, indicating how much the security's returns are expected to change with those factors.

Multifactor APT

A model that describes the expected return on a security based on its exposure to multiple risk factors and the risk premia associated with those factors.

Macro Factors

Macro Factors are large-scale, national, or international elements or forces that affect the economy or the financial markets, such as inflation, unemployment, and fiscal policy.