Which of the Following Is a Reason Small Value Purchases

question 13

Multiple Choice

Which of the following is a reason small value purchases are handled differently?

• A)To give the buyer additional supplier choices
• B)To obtain a higher quality product
• C)To have better tracking of material usage
• D)To control unnecessary administrative costs

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Definitions:

Marginal Productivity

The increase in output produced by adding one more unit of a specific input, keeping all other inputs constant.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often due to externalities, monopolies, information asymmetries, or public goods.

Opportunity Cost

The value of the next best alternative foregone as the result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Leisure

Leisure refers to the time spent away from work, business, or compulsory activities, allowing for rest, recreation, or personal interests and activities.