A Flow Chart Representing Business-To-Business Buying Situations

question 55

Multiple Choice

A flow chart representing business-to-business buying situations


-A business-to-business purchase made by Smithsons, where Smithsons has purchased a similar product in the past but has now decided on a price change, is referred to as a(n) :

• A)straight rebuy.
• B)autocratic buy.
• C)new buy.
• D)consensus rebuy.
• E)modified rebuy.

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Definitions:

Perpetual

A system of inventory management wherein updates are made continuously to the inventory accounts after each purchase or sale.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities match the order and invoice.

Vendor's Invoice

A document issued by a vendor to a buyer indicating the products or services provided, quantities, prices, and terms of payment.

Perpetual

Continuing indefinitely without interruption; in accounting, it often refers to systems that continuously update inventory or records.