In the "Establishing Specifications" Step of the Business-To-Business Purchasing Process

question 90

Multiple Choice

In the "establishing specifications" step of the business-to-business purchasing process, for a modified rebuy situation, specifications are:

• A)examined to ensure that they are current and still meet the company's needs.
• B)never examined.
• C)developed by the users of the product.
• D)developed with the assistance of the vendors bidding on the contract.

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Definitions:

Estimated Ending Inventory

A projection of the value of inventory on hand at the end of an accounting period, often calculated using inventory methods such as FIFO or LIFO.

Gross Profit Rate

The ratio of gross profit (sales minus cost of goods sold) to sales revenue, expressed as a percentage.

Balance Sheet

A financial statement that summarizes a company’s assets, liabilities, and shareholders’ equity at a specific point in time.

Gross Profit Method

An estimating technique used to determine the cost of goods sold and ending inventory, based on the gross profit margin.