Strategies That Would Be Appropriate for an "Out" Supplier to Follow

question 25

Multiple Choice

Strategies that would be appropriate for an "out" supplier to follow in dealing with a well-satisfied customer in a straight rebuy situation include:

• A)attempting to gain a position on the organization's preferred list of suppliers.
• B)demonstrating to the organization that the potential benefits of reexamining requirements and suppliers exceed the costs of doing so.
• C)convincing organizational buyers that their purchasing requirements have changed or that the requirements should be interpreted differently.
• D)all of the answer choices

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Definitions:

FIFO Earnings

Earnings calculated based on the "First In, First Out" inventory method, where the costs of the oldest inventory items are used first in determining profit.

Inventory Holding Gain

The increase in value of inventory held by a company, often due to price increases in the market rather than sales.

Dollar-Value LIFO

An inventory valuation method that uses the last-in, first-out (LIFO) cost flow assumption but measures those costs in dollar values, rather than in physical units, to account for inflation or deflation.

Initial Adoption

The first-time application of a new accounting principle, standard, or policy by a company in its financial reporting.