Examination of the Function of Purchased Parts or Materials in an Effort

question 23

Multiple Choice

Examination of the function of purchased parts or materials in an effort to reduce costs and/or improve performance is called:

• A)vendor analysis.
• B)value analysis.
• C)negotiated purchasing.
• D)vendor relations.
• E)vendor assessment.

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Definitions:

Computers

Electronic devices that execute specific tasks based on programmed instructions, capable of processing, storing, and retrieving data.

Break-even Price

The price level at which revenues equal costs, resulting in neither profit nor loss.

Overhead Expenses

Costs not directly tied to the production of goods or services, such as rent, utilities, and administrative salaries.

Operating Profit

Earnings of a business before interest and taxes are deducted.