Jones Company Started the Accounting Period with $500 in Supplies

question 106

Multiple Choice

Jones Company started the accounting period with $500 in supplies.During the period the company purchased $1,100 of supplies on account.At the end of the accounting period there were $700 of supplies on hand.Based on this information,the amount of supplies expense appearing on the end-of-period income statement would be

• A) $1,600.
• B) $1,100.
• C) $900.
• D) $400.

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Definitions:

Supply Base

The collective group of suppliers and vendors from which a company procures goods and services.

Insource

The practice of performing a business function or task within a company, instead of contracting it out to a third party.

Cross-Functional

Pertaining to a process, project, or team that involves and utilizes the expertise of members from different departments or areas of discipline.

Hybrid Supply Structures

Supply chain models that incorporate a mix of in-house and outsourced activities to optimize efficiency and flexibility.