Which of the Following Is Not an Appropriate Performance Criterion

question 20

Multiple Choice

Which of the following is not an appropriate performance criterion to be used when evaluating suppliers?

• A) Ability to develop process and product technology.
• B) Commitment to quality.
• C) Management capability and commitment.
• D) Cost performance.
• E) Commitment to effective marketing and promotion.

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Definitions:

Overhead Costs

Indirect costs of running a business that are not directly attributable to a specific product or service, such as rent, utilities, and administrative expenses.

Cost Drivers

Factors that cause the cost of a product or service to change.

Single Plantwide Overhead Rate

A method in cost accounting where a single rate is used to allocate all of a plant's manufacturing overhead costs to its products.

Cost Driver

A factor that causes variations in the cost of an activity or process, influencing the financial performance of a company.