Which of the Following Is the Number One Reason in Vendor

question 39

Multiple Choice

Which of the following is the number one reason in vendor selection?

• A)Commitment to quality.
• B)Existing relationship.
• C)Reduce and control operating costs.
• D)Flexible contract terms.

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Definitions:

Cost of Goods Sold

Costs incurred directly from the production of goods a company markets, including both materials and workforce expenses.

Days' Sales

A financial ratio that measures the average number of days a company takes to convert its inventory into sales.

Inventory Turnover

A financial metric measuring the rate at which a company sells and replaces its stock of goods during a particular period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.