A Contract That Is Used to Induce Performance Improvement from a Supplier

question 46

Multiple Choice

A contract that is used to induce performance improvement from a supplier along dimensions,such as lead time,where the benefit of improvement accrues primarily to the buyer,whereas the effort for improvement comes primarily from the supplier is a

• A)buyback or returns contract.
• B)revenue-sharing contract.
• C)quantity flexibility contract.
• D)shared savings contract.

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Definitions:

Deductible IRA Contribution

A contribution to an Individual Retirement Account that can be subtracted from gross income for tax purposes.

Pension Plan

Pension Plan is a type of retirement plan where an employer contributes to a pool of funds set aside for employees' future benefit, distributed upon retirement.

Single Life Annuity Contract

An insurance policy that provides a fixed or variable payment to an annuitant at regular intervals for their lifetime.

Tax-free Amount

An amount or income received that is not subject to income tax by the taxpayer.