Which of the Following Is Not Descriptive of a High

question 80

Multiple Choice

Which of the following is not descriptive of a high level of bargaining power of suppliers?

• A) Substitutes are readily available.
• B) The product or service is unique.
• C) The supplier industry is dominated by a few companies, but sells too many.
• D) The purchasing industry buys only a small portion of the supplier group's goods and services.
• E) Suppliers are able to integrate forward and compete directly with their present customers.

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Definitions:

Assembly Costs

Assembly costs are the expenses incurred during the process of putting together components or parts to manufacture a finished product.

Freight Costs

Freight costs are the charges involved in the transportation of goods from one place to another, often resulting from shipping or logistic operations.

Machine

A piece of equipment, generally powered mechanically, electrically, or digitally, used in the manufacturing or productive process.

Equipment Account

An account on the balance sheet that reports the value of equipment a company owns, less any accumulated depreciation.