What are the methods available to the buyer to review the performance of the chosen supplier? What advantage does performance review offer to the buyer?
What will be an ideal response?
The buyer periodically reviews the performance of the chosen supplier(s) using one of three methods. The buyer may contact end users and ask for their evaluations, rate the supplier on several criteria using a weighted-score method, or aggregate the cost of poor performance to come up with adjusted costs of purchase, including price. The performance review may lead the buyer to continue, modify, or end a supplier relationship. Many companies have set up incentive systems to reward purchasing managers for good buying performance, in much the same way sales personnel receive bonuses for good selling performance. These systems lead purchasing managers to increase pressure on sellers for the best terms.
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If a difference is found between the physical count and the amount in the perpetual inventory records, the records must be corrected by an appropriate adjusting entry
a. True b. False Indicate whether the statement is true or false
When an agency pays in advance for larger expense items like printing, photography, graphics and design, it is standard industry practice to markup such expenses by a factor of approximately ________
A) 12.5% B) 15.25% C) 17.65% D) 19%
Consumer rights spelled out by President John F. Kennedy in the early 1960s included ________
A) the right to protection from goods that are hazardous to health or life B) the right to a sympathetic response from an organization that provides a faulty product C) the right to sue a company for its shoddy advertising of its goods and services D) the right to a full response from a company regarding its return policy
An example of an external threat to a company's future profitability does not include
A. potential of a hostile takeover B. introduction of restrictive trade policies in countries where the company does business C. adverse changes in foreign exchange rates D. lack of a distinctive competence E. unfavorable demographic shifts