The Procurement Process for Both Direct and Indirect Materials Should

question 18

Multiple Choice

The procurement process for both direct and indirect materials should work on

• A)improving coordination and visibility with the supplier.
• B)decreasing the transaction cost for each order.
• C)consolidation of orders to take advantage of economies of scale and quantity discounts.
• D)minimizing communication with the supplier.

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Definitions:

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that, if omitted, accumulate and must be paid before dividends can be paid to common shareholders.

Annual Dividend

The total amount of dividend payments made to shareholders in a year.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in cash.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and cash flow statement.