When a Purchasing Manager Knows Roughly What Is Needed but Can't

question 141

Multiple Choice

When a purchasing manager knows roughly what is needed but can't describe it exactly-or when the purchasing arrangement may change as the job progresses-then buying is likely to be by ________

• A) negotiated contract
• B) description
• C) shared information
• D) Operational linkages
• E) inspection

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Definitions:

Temporal Method

An accounting method used to convert the financial statements of a foreign subsidiary to the parent company's currency, using exchange rates that change over time.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and a claim on part of the company’s profits.

Historical Rate

A foreign exchange rate used to evaluate assets or liabilities, denoting the rate at a specific past date.