Which of the Following Steps for Supplier Development Involves Cost

question 10

Multiple Choice

Which of the following steps for supplier development involves cost, commitments of resources, metrics for improvement, project charters, accountability, and deliverables?

• A) Identify critical products and services.
• B) Identify key projects.
• C) Monitor status and modify strategies.
• D) Identify critical suppliers.
• E) Define details of agreement.

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Definitions:

Prime Costs

A business's direct costs of materials and labor that are associated with the production of goods or services.

Idle Time

The period of time when resources, such as employees or machines, are available but not in use or producing, often resulting in inefficiency.

Overhead

All indirect costs of running a business that cannot be directly attributed to a specific product or service.

Equipment Breakdown

The failure or malfunction of machinery or equipment, interrupting regular operations.