Which of the Following Is Not a Reason That Purchasers

question 56

Multiple Choice

Which of the following is not a reason that purchasers are adopting a more proactive and aggressive role in the procurement process?

• A)There are myriad inefficiencies associated with suppliers initiating marketing efforts toward purchasers.
• B)They are achieving a competitive advantage in the supply chain.
• C)An excess number of suppliers currently exists.
• D)Purchasers may be aware of important benefits that are not known to the supplier.

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Definitions:

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders.

Machine-Hours

The total time machines are operated within a certain period, often used to allocate manufacturing overhead.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, such as salaries of supervisors and the cost of factory utilities.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity base.