Which One of the Following Is NOT a Factor That

question 32

Multiple Choice

Which one of the following is NOT a factor that affects the strength of supplier bargaining power?

• A) Whether demand for supplier products is high and they are in short supply.
• B) Whether industry members are a strong threat to integrate backward into the business of suppliers and self-supply their own requirements.
• C) Whether industry members are struggling to make good profits because of slow-growing market demand.
• D) Whether the costs of industry members to switch their purchases to alternative suppliers are high or low.
• E) Whether the item being supplied is a commodity or is highly differentiated from supplier to supplier.

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Definitions:

Subsidiary Ledger

Individual accounts with a common characteristic grouped together in a separate or secondary ledger, which is used to support a controlling account in the general ledger.

Job Cost Sheet

An account in the work in process subsidiary ledger in which the costs charged to a particular job order are recorded.

Job Order Costing

A cost accounting system in which costs are assigned to specific jobs or batches, which are often custom orders.

Job Order Cost

A cost system that assigns costs directly to a specific job or batch of product, tracking direct labor, direct materials, and overhead.