Firms can expect that proper use of a valid vendor file will result in all of the following benefits except
A) purchasing agents will be discouraged from improperly ordering inventory from related parties
B) purchases from fictitious vendors will be detected
C) the most competitive price will be obtained
D) the risk of purchasing agents receiving kickbacks and bribes will be reduced

Question

Quizplus · Accepted Answer

While a valid vendor file can help detect purchasing from fictitious vendors and reduce the risk of kickbacks and bribes, it does not guarantee the most competitive price will always be obtained. Other factors such as market conditions, negotiation skills, and supplier relationships also impact the price achieved.

Firms Can Expect That Proper Use of a Valid Vendor