A Company Using Portfolio Analysis Decides to Streamline the Purchasing

question 54

Multiple Choice

A company using portfolio analysis decides to streamline the purchasing process for a few items by use of EDI and automated requisitions to the greatest extent possible. The quadrant that these items fall in is most likely the:

• A)bottleneck quadrant.
• B)critical quadrant.
• C)leverage quadrant.
• D)routine quadrant.

---

Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses incurred in converting raw materials into finished products.

Processing Department

A specific department within a factory where a particular stage of production is carried out, such as assembly or painting.

Cost Per Equivalent Unit

The total cost of production, both direct and indirect, divided by the number of equivalent units produced, considering the stage of completion.