Which of the Following Is a Reason That Single Sourcing

question 8

Multiple Choice

Which of the following is a reason that single sourcing is considered risky/bad?

• A) There could be supplier interruptions due to political instability
• B) It could establish close relationships with the supplier
• C) Larger orders make quantity discounts more likely
• D) Decreases the item to item quality variability of items purchased

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Definitions:

Liability Account

An accounting record representing money or value owed by the company to others.

Decrease

A reduction in size, number, or amount.

Debit

A bookkeeping record that leads to an uptick in a firm's assets or a reduction in its liabilities on the balance sheet.

Account Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.