Which of the following is not one of the management uses for the data derived from a comprehensive cost-base supplier evaluation system?
A) Such a system provides the necessary information that allows a buyer to justify buying from a preferred supplier despite a higher unit price.
B) The system allows a buyer to communicate the cost of specific nonperformance events to the originating supplier, which then helps identify improvement opportunities.
C) Quantifying nonconformance costs can result in a chargeback to the offending supplier for unplanned costs.
D) The system allows customized assignment of cost accounting codes depending on how much money is left in the annual budget.
E) A buyer can use this data to identify longer-term sources of supply based on a supplier's total cost performance history.
Correct Answer:
Verified
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