The Advantages Resulting from Concentrating Purchases with a Single Supplier

question 81

Multiple Choice

The advantages resulting from concentrating purchases with a single supplier include:

• A)protection from fraudulent vendors and excess inventory.
• B)a longer lead time.
• C)lower usage rates.
• D)the ability to negotiate the best price package.

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Definitions:

Actual Usage

The real amount of resources consumed or utilized in the production of goods or provision of services.

Standard Material

A benchmark or norm for the quality and type of materials used in the production of goods, aiding in cost control and budgeting.

Service Company

A business that provides services to consumers or other businesses rather than manufacturing goods.

Planning Budget

A budget established at the beginning of the budgeting period that is valid only for the planned level of activity.