Which of the Following Statements About Supply Chains Is FALSE

question 113

Multiple Choice

Which of the following statements about supply chains is FALSE?

• A) A supply chain includes all the activities involved in procuring materials, transforming them into products, and distributing them to customers.
• B) A supply chain includes one or more channels of distribution.
• C) The primary aim of any firm in a supply chain is to contribute to customer value by minimizing its own distribution costs.
• D) Few firms are willing to give "outsiders" access to information in their computer systems, so it is likely to be quite some time before computers have the impact on managing a supply chain that they have had in other areas of business.
• E) None of these statements about supply chains is FALSE.

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Definitions:

Variable Costing

An accounting method that only considers variable costs (costs that fluctuate with production levels) in the calculation of product cost.

Absorption Costing

A costing approach that encompasses all costs associated with production, including direct materials, direct labor, and all overhead costs, both variable and fixed, in the unit cost of a product.

Ending Inventory

The total value of all unsold goods a company has at the end of an accounting period.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the basic profitability of the products or services sold.