If a Potential Vendor Offers What Is Perceived by a Member

question 130

Multiple Choice

If a potential vendor offers what is perceived by a member of the buying center to be a better buy, the company may want to revisit the purchase decision. This type of situation is typically a:

• A)straight rebuy.
• B)modified rebuy.
• C)new task purchase.
• D)joint demand purchase.

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Definitions:

Double-Declining-Balance Method

A depreciation technique that accelerates the rate at which an asset loses value, doubling the rate of the straight-line depreciation method.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.

Depreciation

The planned distribution of the costs associated with a tangible asset over its usage period.

Units-of-Activity Method

A depreciation method that allocates a fixed asset's cost based on its usage, activities, or units of production, reflecting wear and tear more accurately.