MGT 333 Exam 1 Study 100% Verified

MGT 333 Exam 1 Study 100% Verified 60 percent (sales increase of 60 percent would be required to achieve the same percentage increase in profit). - ANS-For an organization with annual sales of $500 million, purchases of $300 million and profit of $50 million, a 10 percent reduction in the cost of purchases would result in a profit-leverage effect of: a reduction in purchase spend increases profit more than an equivalent increase in sales. - ANS-The profit-leverage effect of supply savings means that: All of the above - ANS-Before deciding to outsource, one company should consider the following: 1) Outsourcing risks factors (including risk of creating strategic vulnerabilities) 2) The importance of the internal control over production process and quality 3) A switch back transition plan 4) All of the above allows staff to develop expertise in particular areas. - ANS-Specialization within the supply function: between and among supply, and other internal functions and external sources. - ANS-Information flows: continuing to make. - ANS-When a team has decided that a task or function currently performed by company employees is a core competency, the team will probably recommend: desirable because of the interdependencies between and among functions. - ANS-Internal business partnerships between supply and other functional areas such as marketing/sales, finance/accounting, and engineering are: Expect to increase the speed of response to specific divisional needs. - ANS...