The Opportunity Cost of an Action Is

question 192

Multiple Choice

The opportunity cost of an action is

• A) the monetary payment the action required.
• B) the total time spent by all parties in carrying out the action.
• C) the value of the best opportunity that must be sacrificed in order to take the action.
• D) the cost of all alternative actions that could have been taken, added together.

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Definitions:

Request for Information (RFI)

is a standard business process whose purpose is to collect written information about the capabilities of various suppliers.

Source of Supply

The origin from which goods and services are obtained, which could be a manufacturer, distributor, or a service provider.

Portfolio Analysis

The evaluation of the performance and composition of a collection of investments, projects, or products to make strategic decisions.

Spend Map

A tool or document used in procurement and supply chain management to visualize and analyze an organization's spending patterns, helping with strategic planning and savings identification.