In Its Attempts to Source the Best Raw Materials,Enfi Computers,a

question 53

Multiple Choice

In its attempts to source the best raw materials,Enfi Computers,a computer manufacturer,has associated with 30 suppliers spread across 14 nations.Microchips,an integral part of any computer,are procured exclusively from a supplier in a different country.Enfi Computers has obtained an approval for this no-bid contract from its government and protected its supplies from any potential modifications caused by competing suppliers.Enfi Computers has resorted to _____ for its supply of microchips.

• A)benchmarking
• B)test marketing
• C)competitive bidding
• D)sole sourcing

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Definitions:

Customizing Department

A specialized unit within a company that modifies products to meet specific customer requirements or preferences.

Departmental Predetermined Overhead Rates

Overhead rates calculated for each department based on estimated costs and activity levels, used to allocate overhead costs to products.

Machine-Hours

Machine-Hours are a measure of the actual running time that a machine or group of machines operates during a given period.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, rent, and salaries for support staff.