A Major Cost in the Purchasing Function Is the Number

question 83

Multiple Choice

A major cost in the purchasing function is the number of purchase orders processed.One technique that may reduce purchasing-related expenses is to have suppliers compete with each other to meet demand at the lowest price.The name of this technique is

• A)an EDI auction.
• B)a trading exchange.
• C)a reverse auction.
• D)a supplier consortium.

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Definitions:

Litigation

The process of taking legal action or bringing a lawsuit in court to enforce or defend a legal right.

Marrying

The legal or formally recognized union of two people as partners in a personal relationship.

Void Contract

An agreement that is not legally binding because an essential element is missing.

Oral Agreement

An agreement made verbally without written documentation, enforceable only under specific circumstances and often harder to prove.