Which One of the Following Statements Is TRUE About a Cooperative

question 37

Multiple Choice

Which one of the following statements is TRUE about a cooperative orientation in supplier relationships?

• A)It cannot be implemented in Western countries because competitive bidding is more effective in that culture.
• B)It cannot be implemented in the Western countries because it always benefits the supplier.
• C)It requires all parts and subassemblies to be purchased from the same supplier.
• D)It requires few suppliers for each item or service.

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Definitions:

Favorable

A term used in accounting and finance to describe situations where actual costs are less than budgeted or expected costs, or revenue is higher than anticipated.

Manufacturing Overhead Volume Variance

The difference between the budgeted volume of manufacturing overhead and the actual volume incurred, used for budgeting and cost control.

Overapplied

A situation in cost accounting where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.

Underapplied

A situation where the allocated or applied costs are less than the actual costs incurred.