With Vendor-Managed Inventory

question 85

Multiple Choice

With vendor-managed inventory,

• A)distributors generate orders.
• B)retailers place orders.
• C)customers place orders.
• D)manufacturers place orders.

---

Definitions:

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is not consumed by variable costs and therefore contributes to covering fixed costs.

Segment Margin

The profit or loss generated by a particular segment of a business, after accounting for direct and indirect costs.

Net Operating Income

The profit generated from a company's operational activities after deducting operating expenses from operating revenues.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from gross profit.