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:

Written Amounts

Quantitative figures or values that are documented or recorded in written form, especially in financial transactions.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a designated person.

Payable

An amount of money that is owed and should be paid.

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.