Firms often engage in supply base rationalization. What is the advantage of engaging in this technique?
What will be an ideal response?
Rationalization fosters buyer–supplier relationships, with the objective to increase performance and value of suppliers. This occurs by reducing the number of suppliers to focus on top-performing ones.
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Fixed costs that change for activity outside the relevant range would include
a. supervision costs. b. electricity costs. c. production supplies costs. d. raw materials costs.
Under The Racketeer Influenced and Corrupt Organizations Act:
A) To constitute a pattern under the statute the conduct must be engaged in at least once a year for five consecutive years. B) Only corporations and individuals are subject to its provisions. C) Racketeering activity is narrowly defined to include only offenses commonly engaged in by organized crime such as money laundering. D) As few as two acts in a ten-year period can amount to a pattern under the statute.
Grubber Candy Corporation has developed cost standards for the production of its new chocolate, ChocO. The variable cost standards below relate to each 10 gallon batch of ChocO: Standard Cost Per BatchMilk chocolate (2 pounds × $0.85 per pound)$1.70 Direct labor (1.25 hours × $12.00 per hour)$15.00 Variable overhead (1.25 hours × $44.00 per hour)$55.00 Variable manufacturing overhead at Grubber is applied based on direct labor-hours. The actual results for last month were as follows: Number of batches produced 3,800Direct labor-hours incurred 4,510Pounds of chocolate purchased 9,000Pounds of chocolate used in production 7,880Cost of chocolate purchased$7,200Direct labor cost$53,218Variable manufacturing overhead cost$205,700What is ChocO's materials (milk chocolate) price
variance? A. $56 Favorable B. $740 Unfavorable C. $502 Unfavorable D. $450 Favorable
Bronson entered into a contract with Crane to have some electrical work done. Crane later delegated the work to Frank, another licensed electrician. Which of the following statements is true?
a. Crane cannot legally delegate his contract obligations. b. Crane is still responsible for making sure the obligation is carried out. c. Crane can no longer be held liable if the contract is breached. d. The contract is automatically terminated.