In an Effort to Make Better and More Efficient Purchase

question 85

Multiple Choice

In an effort to make better and more efficient purchase decisions, the Ford Motor Co. includes input from various people, depending on the purchase situation. Individuals may include key personnel from several departments, including research and development, finance, marketing, shipping, and sales. This is a description of Ford's

• A) acquisition committee.
• B) sustainable procurement department.
• C) purchasing unit.
• D) buying center.
• E) buying task force.

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Definitions:

Special Item

Unusual or infrequent gains or losses not classified as extraordinary but significantly important to understand a company's financial health.

Asset Increase

An increase in the total value of assets owned by a company, which can occur due to acquisitions, improvements, or valuation increases.

Corresponding Decrease

A decrease in one variable or metric that occurs in response to an increase in another variable.

Liability

A financial obligation or debt that an entity is required to pay to another entity.