Exam 5: Price and the Vendor

Any food-service business experiences price fluctuations. It is up to management to identify the pattern of the fluctuations and act on them. First, the manager should set a particular date, preferably at the beginning of a month. This is called the:

What is a "credit memo"?

Consignment purchasing and pricing depend on you conducting strict monitoring of the merchandise in your possession.

It is the most commonly used pricing method in day-to-day purchasing transactions. It means that the price to which the purchaser and the vendor agree will not change until the material is delivered and the transaction is completed. This is called a:

What is a "firm price"?

An arrangement made with a vendor to deliver specific goods on a regularly scheduled basis is referring to:

There are several different kinds of price arrangements that you can make with a vendor, including:

Consistency is most important in your vendor relationship because it lessons your effort in monitoring your relationship.

The financial strength of a vendor is an important consideration in your selection process.

Which description is not true regarding "pricing arrangements"?