A Request for Proposal (RFP)is Used When the Firm Knows

question 39

True/False

A request for proposal (RFP)is used when the firm knows exactly what they need,whereas a request for quote (RFQ)is used when the firm is open to the materials and technology to meet their need.

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Definitions:

JIT System

Just-In-Time System, an inventory management strategy that aligns raw-material orders directly with production schedules.

Accounts Payable

The amounts a company owes to its suppliers or vendors for goods or services received but not yet paid for; a liability on the balance sheet.

Collections Float

Float created while funds from customers’ cheques are being deposited and cleared through the cheque collection process.

Disbursement Float

Float created before cheques written by a firm have cleared and been deducted from the firm’s account. Disbursement float causes the firm’s own cheque-book balance to be smaller than the balance on the bank’s records.