When Using the Ranking Method of Evaluating Suppliers

question 16

Multiple Choice

When using the ranking method of evaluating suppliers:

• A) each supplier is ranked for overall suitability
• B) important factors are selected and assigned a "weight"
• C) suppliers are rated against each factor
• D) weight and rating of each supplier is multiplied for each factor and the total taken as the ranking of the supplier
• E) all the above are used.

Recognize when discontinuing a product or segment may not be the best financial decision.

Comprehend the cost-plus pricing strategy and its application.

Understand the total cost method for pricing and its components.

Identify circumstances under which a segment showing a net loss should or should not be discontinued.