A Problem with the Rapidly Expanding Use of E-Procurement Is

question 115

Multiple Choice

A problem with the rapidly expanding use of e-procurement is that it ________.

• A)can also erode decades-old customer-supplier relationships
• B)saves less time than expected
• C)generates more transactions to document
• D)generates less cost savings than predicted
• E)reduces the amount of time purchasing people can spend on strategic issues

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects such as products, departments, or projects.

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages the cost of goods available for sale.

Cost Per Equivalent Unit

An accounting measure used in process costing that represents the cost incurred to produce an equivalent unit of production.

Step-Down Method

A cost allocation method used in costing multiple service departments where the cost of one service department is allocated to others and subsequently to production departments.