In _____, a Purchaser May Have to Use Internal Engineering

question 78

Multiple Choice

In _____, a purchaser may have to use internal engineering estimates about what it costs to produce an item, rely on historical experience and judgment to estimate costs, or review public financial documents to identify key cost data about the seller.

• A)reverse price analysis
• B)TCO analysis
• C)penetration pricing
• D)using the PPI
• E)competition pricing

---

Definitions:

Regulatory Compliance

Adhering to laws, regulations, guidelines, and specifications relevant to business operations or activities.

Zero-Based

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," without reference to previous budgets.

Incremental

Pertaining to an increase or addition, especially in a series of small, regular steps.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.