Question detail
CycleNest serves tourists while improving quality control; the case evidence includes average order value of ?2,455, sales of 905 units, and a 32% 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 gross profit margin, 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 gross and net profit 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 gross profit margin, shareholders impact, and the business objective in Suppliers, logistics and supply chains.
Explanation
This is the best-supported choice because Use procurement, logistics to judge gross profit margin, shareholders impact, and the business objective in Suppliers, logistics and supply chains. The case evidence gives ?3,955, 905 units, and 32%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse gross and net profit, 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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