A Spend Analysis Includes All of the Following Characteristics Except

question 10

Multiple Choice

A spend analysis includes all of the following characteristics except:

• A) Identifies which vendors are being paid
• B) What physicians are influencing vendors
• C) The types of items most commonly used
• D) Identify areas for cost savings and improved contractual negotiation

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Definitions:

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.

Quick Ratio

Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.

Current Ratio

The Current Ratio is a financial metric used to evaluate a company's ability to pay its short-term liabilities with its short-term assets, indicating liquidity.

Prepaid Items

Expenses paid in advance for goods or services to be received in the future.