Question

Leverage items are typically commodities… What are some other characteristics of leverage items? a. They don’t pose significant supply risk due to shortages b. They are bought in large volumes c. They influence product quality and business growth d. All of the above

Answer 1

Answer:

The correct answer is the option D: All of the above.

Explanation:

To begin with, the name of "Leverage Items" is used in the field of business in order to refer to the type of items in which the company that is buying them can leverage its purchasing power due to the fact that the supply chain risk in that area is very low because there are a lot of supplier of the good and therefore that the company increases its purchasing power becuase it can buy from any one, those items are commonly commodities and obviously the comapany has to buy them in large volumens so the price will be reduced and the quality of them will impact in the final product and that will influece in the business growth.