What Is the Most Significant Advantage of a Single Supplier

question 3

Multiple Choice

What is the most significant advantage of a single supplier of an AIS?

• A) Greater expertise is available.
• B) The choice of suppliers will greatly expand.
• C) One party is responsible for implementation.
• D) None of these is a significant advantage.

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Definitions:

Supervisory Costs

Indirect costs related to the salaries and benefits of supervisory staff within the production process.

Machine Hours

A measure of production activity or volume based on the number of hours machines are operating in the manufacturing process.

Idle Capacity

The portion of a company's resources or assets that are underused or not being used at all, often leading to inefficiency and increased costs.