The Foreign Subsidiary of a Large Corporation Is

question 34

Multiple Choice

The foreign subsidiary of a large corporation is

• A) not a responsibility center.
• B) a profit center.
• C) a cost center.
• D) an investment center.

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Definitions:

Single Sourcing

The procurement practice of acquiring goods or services from one selected supplier.

Buyer-Specific Investment

Investments made by a company tailored to the needs or specifications of a single buyer, often to strengthen the business relationship or secure long-term contracts.

Procurement Goal

Objectives set by an organization’s procurement department focusing on acquiring goods and services to meet its needs in terms of quality, quantity, timing, and cost.

Total Cost

The complete cost of producing and delivering a product or service, including material, labor, overhead, and any other direct or indirect costs.