A Criterion in Establishing Whether a Purchase Is Strategic Can

question 13

Multiple Choice

A criterion in establishing whether a purchase is strategic can be:

• A)determined by the chief executive officer (CEO).
• B)determined by the customer.
• C)determined by the supplier.
• D)determined by performing Pareto analysis to determine if the purchase is an "A" item.
• E)defined by specification.

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Definitions:

Objective

A specific, measurable, achievable, relevant, and time-bound goal that drives strategic and operational planning.

Internal Users

Internal users are individuals within an organization, such as management and employees, who use financial information to make decisions about the operations and future direction of the company.

External Users

Individuals or organizations outside of a company who have an interest in the company's financial information, such as investors, creditors, and regulatory bodies.

Accounting Information

The systematic and comprehensive recording of financial transactions pertaining to a business, which is used for analysis, planning, and decision-making.