The Competitive Bidding Process Should Not Be Employed When the Following

question 5

True/False

The competitive bidding process should not be employed when the following conditions prevail:
The dollar value of the bid must be large enough to justify the expense of bidding.The specifications of the product on service must be precise enough for both the buying and selling firms to accurately cost out.There are enough selling firms in the market.There is adequate time to use this form of bidding. The competitive process usually takes from four to eight weeks for most industrial firms.

---

Definitions:

Variable Overhead Efficiency Variance

The difference between the actual and expected (or standard) use of variable overheads based on the actual activity levels.

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with the level of production, such as utility costs for machinery.

Particular Product

Refers to a specific item or product line that a company manufactures or sells.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the expected variable overhead, based on a predetermined rate.