Which Activity Is Likely to Be Involved in the Acquisition

question 102

Multiple Choice

Which activity is likely to be involved in the acquisition of raw materials?

• A) Identifying potential suppliers
• B) Getting price quotations
• C) Preparing purchase orders
• D) All of the other answers are correct.

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Definitions:

Negative Returns

A situation in which an increase in the amount of inputs used leads to a decrease in the level of output, often seen in cases of over-investment or inefficient production processes.

Worker

An individual who performs tasks or services for compensation; an employee.

Variable Cost

Costs that change in proportion to the activity or volume of output in production, such as raw materials and direct labor costs.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.