Which of the Following Statements About Spend Analysis Is Incorrect

question 56

Multiple Choice

Which of the following statements about spend analysis is incorrect?

• A) It determines who is buying what within a company so that purchases can be consolidated and volume discounts can be achieved.
• B) It uses Pareto analysis to see which few items make up the largest spending categories.
• C) It can identify suppliers in different business units or in different geographic locations that are providing better buying terms than suppliers in other parts of the business,
• D) It cannot indicate if contract prices are not being adhered to.

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Definitions:

Supply Chains

The entire network of entities involved, directly or indirectly, in serving a customer with a product or service.

Responsive

The ability to quickly and accurately react to changes or inputs, often used in the context of web design or customer service.

Efficient

Achieving maximum productivity with minimum wasted effort or expense, often related to the optimal use of resources.

Aggregate Forecasts

Predictions made about future demand, sales, or other financial metrics, based on historical data and analysis of market trends, on a collective basis.