When a Supplier Makes a Downward Adjustment in the Amount

question 26

Multiple Choice

When a supplier makes a downward adjustment in the amount owed by a creditor, the creditor will:

• A)reduce the amount of the account payable to the supplier, and decrease an asset such as inventory.
• B)increase the amount of the account payable to the supplier, and decrease an asset such as inventory.
• C)reduce the amount of the account payable to the supplier, and increase cash.
• D)reduce the amount of the account payable to the supplier, and decrease cash.

Recognize the importance of managing flows of goods, services, finances, and information within supply chain management.

Understand how logistics and supply chain strategies affect elements of the marketing mix.

Understand the difference between express and implied warranties in sales contracts.

Identify the conditions under which a breach of warranty occurs.

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Definitions:

Objective Function

A mathematical function used in optimization to represent the goal that needs to be achieved, often minimizing or maximizing some quantity.

Linear Programming

A mathematical method for determining the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Objective Function

A mathematical function used in decision-making processes, often in optimization, representing the goal that needs to be achieved.

Constraints

Restrictions or limitations in decision-making processes or in the optimization of systems, such as resource limits or production capacities.