The Decision-Making Process That Organizations Use to Establish the Need

question 34

Multiple Choice

The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers is referred to as

• A) the consumer purchase decision process.
• B) the industrial purchase procedure.
• C) organizational buying behavior.
• D) the offering purchase framework.
• E) the sustainable procurement process.

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Definitions:

Weighted Average Cost

A method of calculating the cost of goods available for sale that considers the cost of goods at varying times and at different purchase costs.

Computation

The process of performing mathematical calculations or processing information to achieve a result.

Debt-equity Ratio

A metric that evaluates the financial leverage of a company, determined by dividing the total amount of its liabilities by its shareholder equity.

Weighted Average Cost

A financial metric that calculates the average price of various sources of capital (debt, equity, etc.), weighted by their respective use in the financing mix of a company.