Procurement Professional Are Focused on the Total Cost of Ownership

question 135

Multiple Choice

Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:

• A) procurement is now increasingly charged with pushing back inventory to vendors.
• B) there is increased consideration of trade-offs among purchase price, quality, and vendor capability.
• C) procurement is decreasing its emphasis on the importance of vendor certification and audit programs.
• D) there is increased emphasis on procuring at the lowest purchase price possible.

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Definitions:

Imports

The goods and services purchased from other countries.

Foreign Direct Investment

An investment made by a firm or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets.

U.S.

Refers to the United States of America, a country primarily located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Restaurant Chain

A set of related restaurants in different locations that are either under shared corporate ownership or franchising agreements.