Which of the Following Are Examples of Process-Level Information Relevant

question 28

Multiple Choice

Which of the following are examples of process-level information relevant to the procurement process?

• A) Which suppliers are prompt and which ones are habitually late in delivering the materials ordered?
• B) Which materials are sold most frequently?
• C) Which materials are produced most often?
• D) Which vendor does SSB buy from the most frequently?
• E) What is the average time between creating a sales order and sending the shipment?

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Definitions:

Loss Contingencies

Potential losses that a company might incur if a certain event occurs, recognized in financial statements if the loss is probable and the amount can be reasonably estimated.

Indirect Guarantees

Guarantees provided by a third party to ensure the fulfillment of a contractual obligation indirectly, such as through a subsidiary or parent company.

Warranty Accrual Method

An accounting method used to estimate the future costs of warranties and allocate them to the period in which the related revenue is recognized.

Warranty Expense

Represents the cost that a company expects to incur under its warranty obligations to repair or replace products that it has sold.