Which of the Following Is Not a Common Approach That

question 15

Multiple Choice

Which of the following is not a common approach that buying firm's use to punish a supplier?

• A) Bad mouthing the supplier to other buyers
• B) Litigation and punitive damages
• C) Not awarding future business
• D) Downgrading a supplier
• E) Billing the supplier for failures

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Definitions:

Assembly Department

A division in a manufacturing plant where components are joined together to form a finished product.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, adjusting for the portion of those goods that is complete.

Process Costing

An accounting method used to allocate costs to units of output in industries where production is continuous and units are indistinguishable from each other.

Weighted-Average Method

A technique used in inventory valuation that averages the costs of all goods available for sale during the accounting period.