Which of the Following Is Not a Cost Ratio Plan

question 21

Multiple Choice

Which of the following is not a cost ratio plan step?

• A) Additional costs incurred when doing business with a given supplier are identified
• B) Costs are separated by quality, service, and price elements of supplier performance
• C) Each cost is converted to a "cost ratio"
• D) The highest individual cost ratio is then used to adjust the supplier's price
• E) Adjusted prices are then used in supplier evaluation

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Definitions:

Perceivable Difference

The smallest difference in stimulation that a person can detect 50% of the time.

Wavelength of Light Waves

The distance between consecutive peaks or troughs in a light wave, determining its color in the visible spectrum.

Amplitude of Light Waves

The height of a light wave, which determines the intensity or brightness of light.

Frequency of Light Waves

The number of wave cycles (peaks and troughs) that pass a specific point in space per unit of time, characterizing different types of light in the electromagnetic spectrum.