Companies Can Set More Stringent Quality Requirements for Their Suppliers

question 76

Multiple Choice

Companies can set more stringent quality requirements for their suppliers by ______.

• A)implementing a comprehensive supplier certification program
• B)requiring vendors to obtain ISO certification
• C)terminating suppliers if they supply certain percentage of defective input
• D)not outsourcing any raw material purchases

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Definitions:

Avoidable Fixed Costs

Costs that can be eliminated if a particular business segment or operation is discontinued.

Joint Products

Two or more products that are generated from a common set of inputs through a single manufacturing process.

Scrap Value

Scrap value is the estimated residual value of an asset at the end of its useful life, often considered when calculating depreciation.

Financial Advantage

The benefit obtained in financial terms, which can be through gains in revenues, reductions in costs, or improved profitability.