In the Business-To-Business Buying Process Evaluation of Vendors Normally Occurs

question 143

Multiple Choice

In the business-to-business buying process evaluation of vendors normally occurs at three levels.The second level is:

• A) a vendor audit
• B) an initial screening of proposals
• C) a sharing of vendor audit information
• D) vendor identification

---

Definitions:

Unit Conversion Cost

The cost incurred to transform raw materials into finished goods on a per unit basis, including both direct labor costs and manufacturing overhead.

Materials Cost

The total expense incurred for materials that are used in the production of goods or services.

Work in Process

Inventory that is in the production process but is not yet completed.

Equivalent Units

Equivalent units are a concept in cost accounting used to apportion costs to partially completed goods, calculating them as if they were finished units.