Which of the Following Is Not an Example of a Sharp

question 18

Multiple Choice

Which of the following is not an example of a sharp practice?

• A) A supply manager talks in terms of large quantities to encourage a price quote on that basis
• B) A sales person buys lunch for a buyer in the hope that the buyer will be influenced to buy his or her goods and services
• C) A large number of bids are solicited in hope that the buyer will be able to take advantage of a quotation error
• D) Bids are obtained from unqualified suppliers that the supply manager would not patronize in any case
• E) A supply manager who places in competition the prices of seconds, odd lots, or distress merchandise misrepresents a market

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Definitions:

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is greater than the actual overhead incurred.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold to customers.

Job Cost System

An accounting system used to track costs specifically by job or order, collecting material, labor, and overhead costs.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold.