Question detail
StyleHub serves repeat customers while raising prices; the case evidence includes unit contribution of ?9,519, sales of 614 units, and a 26% change in costs or demand. Which option best applies Explain procurement and logistics and their effect on efficiency and unit costs?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
The role of procurement
Question
- A. Use procurement, logistics to judge break-even output, shareholders impact, and the business objective in Suppliers, logistics and supply chains.
- B. Give only a definition of The role of procurement without using the case evidence.
- C. Treat internal and external finance as identical and ignore the effect on shareholders.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use procurement, logistics to judge break-even output, shareholders impact, and the business objective in Suppliers, logistics and supply chains.
Explanation
The answer is commercially strongest because Use procurement, logistics to judge break-even output, shareholders impact, and the business objective in Suppliers, logistics and supply chains. The case evidence gives ?11,019, 614 units, and 26%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse internal and external finance, miss the shareholders, or ignore the business objective.
Common mistake
Suppliers, logistics and supply chains common mistake 1
Giving a vague answer instead of directly addressing: Explain procurement and logistics and their effect on efficiency and unit costs..
Answer by clearly explaining how to explain procurement and logistics and their effect on efficiency and unit costs..
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