Which of the Following Most Likely Occurs in the Supplier

question 106

Multiple Choice

Which of the following most likely occurs in the supplier selection stage of the business buying decision process?

• A) The buyer calls for detailed written proposals or formal presentations from each potential supplier.
• B) The buyer compiles a small list of qualified suppliers by reviewing trade directories, doing computer searches, or contacting other companies for recommendations.
• C) The buying team decides on the best product characteristics and specifies them accordingly.
• D) The buyer prepares a general need description and identifies the quantity of the needed item.
• E) The buying center draws up a list of the desired supplier attributes and their relative importance.

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Definitions:

Variable Cost

Variable Cost refers to expenses that change directly and proportionally with the level of production or sales activity, such as raw materials and direct labor costs.

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and premiums.

Operating Income

Operating Income, also known as operating profit, reflects the amount of profit realized from a business's operations, after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Financial Risk

The possibility of losing money on an investment or business venture.