Which One of the Following Statements Is TRUE

question 90

Multiple Choice

Which one of the following statements is TRUE?

• A) The buyer can increase the amount of defect- free raw materials by working with the supplier.
• B) The buyer should always use the supplier that offers the lowest prices.
• C) The buyer should act independently of the engineering and quality control departments.
• D) The buyer should emphasize the need to inspect quality into the product when evaluating the quality of a supplier's products.

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Definitions:

Economic Efficiency

A scenario in which the allocation of resources is aimed at maximizing the creation of goods and services.

Benefits Exceed

A term indicating that the advantages or positive outcomes of a decision or situation outweigh the costs or negative outcomes.

Activity Costs

The expenses associated with specific activities or processes within a business, often analyzed for cost management purposes.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that sellers are willing to supply, holding other factors constant.