The Concentration of Suppliers and the Availability of Substitute Suppliers

question 99

True/False

The concentration of suppliers and the availability of substitute suppliers are significant factors in determining supplier power.

---

Definitions:

Grinding Minutes

Grinding minutes are a measure of the time spent in the process of grinding, which is a machining process used to improve surface finish or obtain precise dimensions by removing small amounts of material.

Monthly Demand

The total quantity of a product or service that consumers are willing and able to purchase within a month.

Variable Selling Cost

Costs that vary directly with the level of sales, such as commissions or shipping charges related to the sale of products.

Opportunity Costs

Opportunity costs represent the benefits a person, investor, or business misses out on when choosing one alternative over another.