Question detail
PeakPods serves online shoppers while training staff; the case evidence includes customer retention of ?7,713, sales of 398 units, and a 38% change in costs or demand. Which option best applies Explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies?
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 stock to judge cash inflow, local community impact, and the business objective in Managing stock.
- 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 local community.
- D. Choose the largest sales figure without checking costs, finance, or context.
Answer
The correct option is: Use stock to judge cash inflow, local community impact, and the business objective in Managing stock.
Explanation
This is the best-supported choice because Use stock to judge cash inflow, local community impact, and the business objective in Managing stock. The case evidence gives ?9,213, 398 units, and 38%, 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 local community, or ignore the business objective.
Common mistake
Managing stock common mistake 1
Giving a vague answer instead of directly addressing: Explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies..
Answer by clearly explaining how to explain the benefits of reduced stock costs and the risks of frequent deliveries and lost purchasing economies..
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