With Reference to Strategic Sourcing,the Portfolio Model Is

question 39

Multiple Choice

With reference to strategic sourcing,the portfolio model is

• A)the result of the sheer volume of spend for a particular item.
• B)used to determine cost discounts targets for different suppliers.
• C)a framework for making purchasing-related decisions.
• D)used to make investment decisions in supplier assets.

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Definitions:

Periodic System

An inventory system where updates to inventory levels are made periodically, as opposed to continuously.

Voucher Systems

A control and documentation system used in accounting to process and monitor transactions.

Net Method

An accounting method where discounts for early payment are assumed to be taken and sales or purchases are recorded at their net of discount values.

Purchases Discount

Purchases discount is a reduction in the price paid for goods or services, often granted to a buyer when payment is made within a specified period.