A ________ Establishes a Long-Term Relationship in Which the Supplier

question 61

Multiple Choice

A ________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time.

• A) stockless purchase plan
• B) direct stock purchase plan
• C) defined contribution plan
• D) stock purchase plan
• E) share purchase plan

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Definitions:

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.

Work in Process

Inventory that includes the cost of raw materials, labor, and manufacturing overhead for products that are in various stages of production but not yet complete.

Finished Goods

Finished goods that are prepared and available to be bought by customers.

Work in Process Inventory

Inventory that is in the process of being manufactured but is not yet complete.