The principle that decreasing the money spent on purchasing functions increases profit FASTER than increasing revenue as a result of marketing and sales is called the: A. Supply Importance Factor B. Supply Bonus Effect C. Profit Leverage Effect D. Profit Speed Effect E. Purchasing Importance Factor

Answer

Option C. Profit Leverage Effect

Explanation:

Purchasing activities are said to be assignments/tasks buyers have to perform if they want to have or obtain the right products and services at the right price and time from the right vendors.

Profit-Leverage Effect is usually measured by the increase in profit gotten as a result of a decrease in purchase spend

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

enlightenment impacted society by introducing the idea that mankind could use reason to discover the laws of the world and the rights of mankind. these ideals affected all factions of society, from politics to religion.