Identify the Reason That Can Be Attributed to the Fact

question 35

Multiple Choice

Identify the reason that can be attributed to the fact that straight rebuys are common among organizations that practice just-in-time inventory.

• A)Straight rebuys allow these organizations to evaluate several vendors before selecting one that is most suitable.
• B)Straight rebuys allow these organizational buyers to get substantially lower prices as just-in-time inventory is characterized by bulk purchases.
• C)Straight rebuys allow these organizations to replenish their goods without having to hunt around for potential suppliers and solicit bids.
• D)Straight rebuys reduce the organizations' dependence on suppliers by independently maintaining reserves.

---

Definitions:

Cost Estimation

The process of forecasting the likely costs of a project or production, based on various factors and historical data.

Data Collection

The process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Activity Based Costing

A costing method that assigns costs to products or services based on the resources they consume and the activities they require.

Cost Behaviour

The way in which a cost changes in relation to changes in business activity levels.