Which of the Following Is a Disadvantage of a Cost-Based

question 22

Multiple Choice

Which of the following is a disadvantage of a cost-based supplier evaluation system?​

• A)Least reliable.
• B)Most complex so implementation costs are high.
• C)Less frequent generation of evaluations.
• D)Most subjective.
• E)Tends to focus on unit price.

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Definitions:

FOB Destination

A shipping term indicating that the seller retains ownership and responsibility for goods until they are delivered to the buyer's location.

Sales

The total amount of goods or services sold by a company during a specific period.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value.

Certificates of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, held at a bank or financial institution.