FNG Corporation Employs 4 Purchasing Agents

question 108

Multiple Choice

FNG Corporation employs 4 purchasing agents. Rick processes purchase orders for vendors starting with the letters A through H, while Merrill does the same task for vendors from I through N. Esteban deals with vendors in the O through R range, and Kathy handles the rest of the alphabet. The most likely cost driver for the purchasing agents' salaries is the:

• A) Number of vendors within each alphabetical segment
• B) Number of purchase orders processed each month
• C) Average dollar amount of each purchase order
• D) Number of product lines FNG produces

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Definitions:

Alcohol Use Disorder

A health disorder marked by a lacking capacity to cease or manage alcohol consumption in spite of negative effects on social, work, or physical well-being.

Withdrawal

The process of reducing or eliminating the intake of a substance to which one has become dependent or addicted, often accompanied by physiological and psychological effects.

Depressant

A substance that reduces the functional or nervous activity of the body, often used to induce sedation.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, generally increasing alertness, attention, and energy.