Regarding Supplies

question 324

Multiple Choice

Regarding supplies,

• A) new-task buying is typical with most purchases.
• B) only one supplier is generally available.
• C) branding is not important for maintenance and small operating supplies.
• D) All of the above are true.
• E) None of the above is true.

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Definitions:

Divisional Segment Margin

A measure of the profitability of a specific division or segment within a company, usually calculated as the division's earnings before interest and taxes divided by its revenues.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest charges.

Common Fixed Expense

Costs that do not change with the level of production or sales within a certain range, and are shared across multiple departments or products.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of goods sold.