A Vendor Was Removed from a Company Due to Non-Performance

question 294

Multiple Choice

A vendor was removed from a company due to non-performance but continues to submit invoices for work that was not completed. Which of the following should the project manager do to stop the vendor from sending invoices?

• A) Draft a C&D letter and send it to vendor.
• B) Review the MOU with the vendor.
• C) Ask the legal departments to draft a non-complete agreement for the vendor to sign.
• D) Meet with the finance department to prevent the vendor from sending invoices.

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Definitions:

Explicit Cost

The monetary payment made by a firm to an outsider to obtain a resource.

Accounting Profits

The net earnings of a company calculated according to generally accepted accounting principles, taking into account all explicit costs but not implicit costs.

Implicit Cost

Costs that represent the loss of potential gain from using assets in an alternative option rather than in their current use.

Implicit Costs

The opportunity costs of resources that are owned by the firm and used in production, not involving direct payment of money but affecting the firm's profitability.