Supply chain network design decisions classified as market and supply allocation are concerned with
A) what processes are performed at each facility.
B) where facilities should be located.
C) how much capacity should be allocated to each facility.
D) what markets each facility should serve and which supply sources should feed each facility.
Answer: D
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When a cost-based transfer price is used, the transfer price may be based on any of the following except
a) fixed cost alone. b) full cost. c) variable cost alone. d) all of these may be used.
Xavier and Yolonda have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss of $6,000 is allocated to Xavier?
A) $4,000 B) $1,000 C) $3,000 D) $6,000