All of the Following Are Conditions Under Which Competitive Bidding

question 13

Multiple Choice

All of the following are conditions under which competitive bidding is effective except _____.

• A)the buyer has a preferred supplier for the item
• B)volume is high enough to justify this method
• C)the marketplace is competitive
• D)the specifications or requirements are clear to the seller
• E)adequate time is available for suppliers to evaluate the RFQs

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Definitions:

Capital Expenditures

Investments in physical assets like property, plant, and equipment, which are expected to improve a company’s future productive capacity.

Operating Efficiency

A metric that indicates the ratio of output gained to the input expended in the business process.

Extend Its Useful Life

The process of prolonging the period over which an asset can productively be used, often through maintenance or improvements.

Functional Depreciation

The decrease in the usefulness or value of an asset due to advancements in technology or changes in market demands, rather than physical wear and tear.