Since Organizations Obtain Resource Inputs from the Environment and Transform

question 141

Multiple Choice

Since organizations obtain resource inputs from the environment and transform them into outputs that are returned to the environment in the form of finished goods or services, they may be viewed as:

• A) stakeholders.
• B) suppliers.
• C) open systems.
• D) transformational paradigms.
• E) resource allocators.

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Definitions:

Cost of Goods Sold

The immediate expenses related to the manufacture of products sold by a business, encompassing both materials and workforce.

Perpetual System

An inventory management method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

FIFO Perpetual

An inventory management system where the first items purchased (First-In) are the first to be sold or used (First-Out), continuously updated.

Cost of Goods Sold

The total cost directly tied to the production of the goods sold by a company, including materials and labor.