A Supplier Certification Program

question 11

Multiple Choice

A supplier certification program:

• A)adds cost to the supplier,but provides few benefits to the supplier.
• B)may improve quality,but at best will not raise costs.
• C)always improves quality,but usually at a higher purchase price.
• D)may enable the buyer and seller to lower costs and improve quality.
• E)typically costs more to implement than the value of the quality improvement.

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Definitions:

Credit To

An accounting entry that increases the balance of liabilities, equity, or revenue accounts, or decreases the balance of assets or expense accounts.

Authorized Stock

Authorized Stock refers to the maximum number of shares a corporation is legally allowed to issue, as specified in its articles of incorporation.

Formal Accounting Entry

A documented record in accounting that notes all the details of a financial transaction within an organization’s financial system.

Bylaws

The set of rules or guidelines that govern the internal management and regulations of an organization or corporation.