When Recovering Indirect Costs,the Textbook Provides Several Recommendations

question 11

Multiple Choice

When recovering indirect costs,the textbook provides several recommendations.Which is not one of the recommendations?

• A) A supply professional must understand how the supplier estimates and applies overhead
• B) Investigate whether the supplier uses outdated overhead allocation methods that no longer reflect the true costs of the products they produce and sell
• C) A small error in estimating and applying overhead can significantly affect the final cost, so look for even small errors
• D) Force the supplier to use Activity Based Costing methods in estimating costs given in their proposals and bids
• E) A supply professional should motivate a selling firm with poor cost control to improve its system of collecting and applying costs to products

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Definitions:

Data-Processing Techniques

Methods and procedures used for transforming raw data into meaningful information through various manipulations such as coding, sorting, and summarizing.

Sampling Without Replacement

Once an element has been included in the sample, it is removed from the population and cannot be selected a second time.

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Volume

The amount of data generated.