The ratio of purchased material and services costs compared to total costs or total income has a major influence on:

Multiple Choice:a. the nature of the products or services acquired. b. the size of the supply base. c. the extent to which supply and suppliers can provide competitive advantage. d. supply's reporting level in the organization. e. the credentials of the existing supply personnel.

The correct answer is letter "D": supply's reporting level in the organization.

Explanation:

The levels of supply are the amounts of raw materials a supplier may have as per request. The factors that affect a company's supply level are the ratio of purchased inventory and service costs as a percentage of the company's total cost or profit, the type of products or services purchased, and the competitive advantage that can be attributed to the suppliers.

a. the nature of the products or services acquired

c. the extent to which supply and suppliers can provide competitive advantage.

d. supply's reporting level in the organization.

Explanation:

Options a, c, d all qualify as answers for the above question. The ratio of purchase or service cost to total cost or income have major influences on the options listed above because a dominating purchase of a certain material or certain services would determine supplies in the form as listed: nature of products or services, supplier's competitive advantage (how much his products or services are needed), and supplier's reporting level.