Information Technology Helps Physical Distribution in What Ways

question 22

Multiple Choice

Information technology helps physical distribution in what ways?

• A) It improves service levels, but doesn't coordinate activities.
• B) While it cannot cut costs, it can coordinate activities.
• C) It can cut costs and improve service levels.
• D) It is overrated and generally fails to improve service levels and coordinate activities.
• E) It improves service levels while raising costs.

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Definitions:

Impairment

Reduction in the recoverable value of an asset below its carrying amount.

Recoverable Amount

The higher value between an asset's fair market value less costs to sell and its value in use.

AASB 136

The Australian Accounting Standards Board standard that deals with impairment of assets, requiring assets to be carried at no more than their recoverable amount.

Value In Use

The present value of the future cash flows expected to be derived from an asset, used in impairment testing.