Sam Works for a Small IT Management Company

question 109

Multiple Choice

Sam works for a small IT management company.He is responsible for replenishing the supply of office stationery.Every week he makes an inventory of the required items and gets them.Using the business products classification system,which of the following is most likely to be true of Sam's purchases?

• A)Sam's purchases are influenced solely by the quality of the products.
• B)Sam plans extensively for his purchases.
• C)Sam's purchases tend to be infrequent.
• D)Sam's purchases are highly influenced by the prices of the products.

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Definitions:

Return on Investment (ROI)

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit of an investment by its cost.

Investment Center A

A segment or area of a business responsible for its own revenue, expenses, and assets, with its performance measured by its ability to generate income relative to its invested capital.

Income Data

Financial information that shows the revenues earned and expenses incurred by a business over a period of time.

Asset Data

Information about the resources owned by a business, which have economic value and can contribute to generating income.