There Are at Least Two Methods to Build a List

question 119

Multiple Choice

There are at least two methods to build a list of potential suppliers once product specifications have been outlined.One of the methods is to use the cumulative experience of the company over time.The second method is _______.

• A) Buying a list from a list broker
• B) Use supplier search websites like Thomas Global Register
• C) Ask all sales people to respond to the RFP
• D) Create a list from the Yellow Pages
• E) Go to several trade shows and find suitable suppliers

---

Definitions:

Variable Overhead Rate

A rate that fluctuates with changes in production levels or business activity, applied to allocate variable overhead costs to products or services.

Cash Disbursements

The outflow of cash for expenses, investment purchases and other payments.

Manufacturing Overhead Budget

A financial plan that estimates the expected indirect costs of producing goods or services, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of the amount of time spent by workers who are directly involved in the production process of creating goods or services.