A brewery is considering selecting one of its two suppliers of bottles - Bottle-it and Cap-Me...
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A brewery is considering selecting one of its two suppliers of bottles - Bottle-it and Cap-Me - as a preferred supplier. The following information is obtained for the year just ended: Total supplier activity costs Total purchase cost No. of bottles purchased Bottle-it $ 800,000 500,000 1,000,000 Cap-Me $ 150,000 120,000 225,000 Which of the following conclusions is correct? O a. The preferred supplier can be chosen based on total cost of ownership, and therefore Bottle-it should be the preferred supplier. O b. The preferred supplier can be chosen based on supplier performance index, and therefore Cap-Me should be the preferred supplier. The preferred supplier can be chosen based on purchase cost per bottle, and therefore Bottle-it should be the preferred supplier. O d. The preferred supplier can be chosen based on supplier activity cost, and therefore Cap-Me should be the preferred supplier. O e. The preferred supplier can be chosen based on purchase cost per bottle and supplier performance index, and therefore both suppliers should be equally preferred. A brewery is considering selecting one of its two suppliers of bottles - Bottle-it and Cap-Me - as a preferred supplier. The following information is obtained for the year just ended: Total supplier activity costs Total purchase cost No. of bottles purchased Bottle-it $ 800,000 500,000 1,000,000 Cap-Me $ 150,000 120,000 225,000 Which of the following conclusions is correct? O a. The preferred supplier can be chosen based on total cost of ownership, and therefore Bottle-it should be the preferred supplier. O b. The preferred supplier can be chosen based on supplier performance index, and therefore Cap-Me should be the preferred supplier. The preferred supplier can be chosen based on purchase cost per bottle, and therefore Bottle-it should be the preferred supplier. O d. The preferred supplier can be chosen based on supplier activity cost, and therefore Cap-Me should be the preferred supplier. O e. The preferred supplier can be chosen based on purchase cost per bottle and supplier performance index, and therefore both suppliers should be equally preferred.
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Bottleits total supplier activity costs were 150000 They purchased 225000 bottles Th... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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