Which of the Following Is Not an Element in a Category

question 4

Multiple Choice

Which of the following is not an element in a category sourcing plan? 

• A) Category identification. 
• B) Business strategy and business issues. 
• C) Analysis of historical data. 
• D) Customer requirements and purchasing process.

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Definitions:

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment to increase operational efficiency.

Future Net Cash Flows

The estimated total cash income minus the total cash expenses expected over a future period.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.