Which One of the Following Statements Is True About Sourcing

question 59

Multiple Choice

Which one of the following statements is True about sourcing?

• A) Purchasing's primary role is to satisfy the firm's long-term supply needs.
• B) Purchasing's primary role should be placing and tracking orders.
• C) Purchasing's primary role is to negotiate lower prices.
• D) Purchasing's primary role is to negotiate prices and delivery dates.

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Definitions:

Product Margin

Product margin refers to the difference between the selling price of a product and the cost of goods sold, representing the profit made on each product sold.

Activity-Based Costing

A pricing approach that allocates overhead and indirect expenses to corresponding products and services according to the activities involved.

Time-Driven

A term that refers to processes or methodologies that are controlled or measured based on time, such as time-driven activity-based costing.

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, providing more accurate costing information.