Which of the Following Would Be the Best Allocation Base

question 53

Multiple Choice

Which of the following would be the best allocation base for a product designed for a specific customer?

• A)Quantity of materials used.
• B)Hours of design time.
• C)Square feet of space occupied.
• D)Number of new products.
• E)None of the answer choices is correct.

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Definitions:

Forward Auction

An auction where an item or service is offered for sale and buyers submit ascending bids, in contrast to a reverse auction where sellers compete to provide goods or services at the lowest price.

Highest Bidder

The individual or entity willing to pay the most for an item or asset in an auction setting.

RFQ

A Request for Quotation (RFQ) is a business process in which a company asks external suppliers to offer a quote for the supply of specific goods or services under designated conditions.

Reverse Auction

An auction in which the roles of buyer and seller are reversed, with the seller competing to obtain business from the buyer and prices typically decreasing as the auction progresses.