As in the Consumer Decision Process,evaluation Occurs in the Organizational

question 40

Multiple Choice

As in the consumer decision process,evaluation occurs in the organizational buying decision process,but it is more formalized and often more sophisticated.All items purchased are examined in a formal product acceptance process.The performance of the vendor is also monitored and recorded.This evaluation occurs during the __________ stage.

• A)problem recognition
• B)supplier audit
• C)purchase decision
• D)postpurchase behavior
• E)performance review

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Definitions:

Sunk Costs

Expenses that have already been incurred and cannot be recovered, and thus should not affect future decisions.

Accounting Methods

refer to the systematic techniques used to record, summarize, and report financial transactions of a business.

Variable Costs

Costs that change in proportion to the level of goods or services produced or sold.

Minimize Losses

Strategies or actions taken by individuals or firms to reduce the magnitude of financial or operational shortfalls.