Many Companies Perform Lengthy Inspections of Their Suppliers That Involve

question 40

Multiple Choice

Many companies perform lengthy inspections of their suppliers that involve long-term visits and evaluations. These programs often called ________.

• A) supplier segmentation programs
• B) supplier assessment programs
• C) supplier requirement programs
• D) supplier evaluation programs
• E) supplier certification programs

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Definitions:

Matching Principle

An accounting concept that requires expenses to be recorded in the same period as the revenues that are generated as a result of those expenses.

Expenses

It refers to the outflow of cash or other valuable assets from a person or company to another entity as a result of purchasing goods or services.

Related Revenues

Income that is directly connected to the primary operations or activities of a business.

Revenue

The total income generated by a business from its normal business operations, such as sales of goods or services.