In the Establishment of the Specifications Stage of a B2B

question 77

Multiple Choice

In the establishment of the specifications stage of a B2B buying process:

• A) each vendor's proposal, bid, or price quotation is evaluated for acceptability.
• B) the buyer works out any terms that still remain.
• C) the business spells out what is needed and develops decision criteria on which to make a vendor choice.
• D) the requirements arising out of a company's operations are recognized.
• E) the choice of how to acquire a product is made.

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Definitions:

Activity Is Higher

A state indicating increased levels of operations or actions in a given context.

Variable Overhead Efficiency Variance

The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.

Insufficient Demand

A situation where the quantity of a product or service desired by consumers is less than what is supplied in the market.

Excessive Inventories

A situation where a company holds more stock than what is effectively required, leading to increased storage costs and possible obsolescence.