Which of the Following Is Not One of the Management

question 78

Multiple Choice

Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?​

• A)Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price.
• B)The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities.
• C)Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs.
• D)The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget.
• E)A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.

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Definitions:

Birthday Cakes

Customarily decorated cakes made to celebrate and serve as a centerpiece during birthday festivities.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service, reflecting the cost of producing that marginal unit.

Producing Bagels

The process of making bagels, which involves mixing, shaping, boiling, and baking dough in a manner that achieves a distinct taste and texture.

Total Cost

A comprehensive collection of costs involved in manufacturing goods or services, covering both stable and changeable expenses.