Which of the Following Is Not an Example of Questions

question 5

Multiple Choice

Which of the following is not an example of questions that should be asked when evaluating a supplier's management capability?

• A) Has management committed the supplier to TQM and continuous improvement?
• B) Is management customer focused?
• C) What is the willingness of employees to contribute to improved operations?
• D) Does management understand the importance of strategic sourcing?
• E) What is the history of labor/management relations?

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to individual units of product based on a specific costing activity.

Direct Materials Cost

Direct materials cost refers to the expenditure associated with the raw materials used directly in manufacturing a product.

Direct Materials

Materials that are directly used in the manufacture of end products.

Direct Labor

Wages paid to employees who are directly involved in the production of goods or services.