To Lower Costs and Reduce Manufacturing Time, Michelin Has People

question 56

Multiple Choice

To lower costs and reduce manufacturing time, Michelin has people work together on important purchases. These people include individuals in the roles of buyers, deciders, gatekeepers, and others, as needed. This type of cross-functional group is known as a

• A) purchasing committee.
• B) sustainable procurement panel.
• C) buying center.
• D) supply partnership.
• E) purchasing task force.

---

Definitions:

Margin of Safety

The difference between actual or projected sales and the sales break-even point, indicating risk level.

Dollars

The basic monetary unit used in the United States, symbolized as $, representing the currency.

Contribution Format

A type of income statement presentation that separates fixed costs from variable costs, helping to understand the profitability of a company.

Income Statement

A financial statement that summarizes a company's revenues, expenses, and profits or losses over a specific period.