Many Buyers Have Now Concluded That, If They Select Suppliers

question 16

True/False

Many buyers have now concluded that, if they select suppliers carefully and develop close and collaborative working relationships with fewer suppliers, supply risk can actually decrease.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Labor

The body of persons engaged in work or employment, especially manual or physical work.

Materials

The physical substances from which objects are made, available in different forms and used for various purposes in production.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including examples like rent, wages, and insurance premiums.