As Purchasing Manager for Avalon Electronics,Carrie Is Required to Submit

question 3

Multiple Choice

As purchasing manager for Avalon Electronics,Carrie is required to submit a vendor performance analysis every three months.To meet this requirement,Carrie will probably:

• A)interview vendors and seek their feedback.
• B)specify and weight performance factors and quantify results.
• C)develop an RFP for vendor analysis.
• D)recruit new suppliers.
• E)use a modified rebuy vendor form.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable production costs are deducted, contributing to covering fixed costs and generating profit.

High-Low Method

A technique used in accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Mixed Cost

A cost that contains both variable and fixed cost elements, making its total cost vary with changes in activity, but not proportionately.

Engineering Approach

A methodology used in problem-solving and designing solutions, which involves applying scientific and mathematical principles.