Which Action Is Not Necessary in Implementing SM

question 18

Multiple Choice

Which action is not necessary in implementing SM?

• A) Senior management must recognize supply management's critical nature to the firm
• B) Senior management must support the required transformation of supply management to world class
• C) Firms must know where they are in relation to where they want to be
• D) Firms must benchmark best-in-class practices and develop metrics
• E) Firms must force their suppliers into world-class compliance

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Definitions:

Depreciation

An accounting method used to allocate the cost of a tangible asset over its useful life.

Net Capital Spending

The total expenditure on physical assets less any asset sales, reflecting how much a company is investing in its physical assets.

CCA Rate

The annual depreciation rate used under the Canadian tax system to calculate depreciation expense for tax purposes on a depreciable asset.

CCA

An acronym that can stand for Capital Cost Allowance, which is a tax deduction for depreciable property in Canada.