A Sourcing Strategy in Which Two Suppliers Are Used for the Same

question 89

Multiple Choice

A sourcing strategy in which two suppliers are used for the same purchased product or service is:

• A)cross sourcing.
• B)dual sourcing.
• C)contingency sourcing.
• D)multisourcing.

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Definitions:

Depreciation

A method of allocating the cost of a physical or tangible asset over its expected usable life to account for decreases in value over time.

Residual Value

The estimated value that an asset will realize upon its sale at the end of its useful life.

Asset Cost

The total amount incurred to acquire an asset, including purchase price and all expenditures necessary to bring the asset to its intended use.