What Is the First Step in Supplier Selection and Evaluation

question 35

Multiple Choice

What is the first step in supplier selection and evaluation?

• A)Prepare a request for proposal.
• B)Prepare a procurement budget.
• C)Identify possible suppliers.
• D)Identify the need for supply.

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Definitions:

Standard Costing System

An accounting methodology that assigns fixed costs to products, aiding in performance management and budgeting by comparing actual to standard costs.

Budgeted

Relates to the financial plan that estimates future revenue and expenses over a specific time period.

Denominator Level

In cost accounting, it refers to the total amount of allocation base (e.g., direct labor hours, machine hours) that is used to calculate the predetermined overhead rate.

Standard Cost System

A cost accounting method that assigns expected costs to products to help in setting budgets and analyzing cost variances.