Online Reverse Auctions Have Been Developed in Automotive, Healthcare and Other

question 13

Multiple Choice

Online reverse auctions have been developed in automotive, healthcare and other industries to help streamline procurement processes. How do they work?

• A) Sellers post a product online with a 'buy it now' price.
• B) Seller post a product online and buyers bid against each other until the seller accepts a price.
• C) Buyers post their requirements with a floor price and suppliers offer increasingly higher prices for the stated quality and quantity.
• D) Sellers post a product and price online and buyers accept that price.
• E) Buyers post their requirements and a ceiling price, and then allow suppliers to offer increasingly lower prices for the stated quantity and quality.

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Definitions:

Calculate Exchange Gain/Loss

The process of determining the profit or loss from foreign exchange transactions, based on changes in exchange rates.

Monetary Items

Financial elements that are fixed or determinable in terms of money and do not change in value over time, such as cash and receivables.

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary, using exchange rates based on the time assets and liabilities were acquired.

Functional Currency

The currency of the primary economic environment in which an entity operates, used in its financial reporting.