The Direct and Indirect Costs (Discussed in the Textbook) Tend

question 37

Multiple Choice

The direct and indirect costs (discussed in the textbook) tend to add unexpected costs to purchased items. However, the significant benefits associated with offshore sourcing enable the buying firm to ______________ domestic suppliers.

• A) gain leverage over
• B) compete effectively with
• C) reduce costs as compared to
• D) negotiate more effectively with
• E) reduce the number of

---

Definitions:

Accounting Information

Data related to financial transactions and status of a business, used for analysis, decision making, and financial reporting.

Ending Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders, captured at the close of an accounting period.

Revenues

The total income generated by a business from its normal business operations, including sales of goods and services, before any expenses are deducted.

Expenses

Outflows or using up of assets as a part of operations of a business to generate revenue.