Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

Exercise 34

Which of the following is a true statement about activity-based supplier costing? a. The cost of a supplier is the purchase price of the components or materials acquired.
B) Suppliers can affect many internal activities of a firm and significantly increase the cost of purchasing.
C) It encourages managers to evaluate suppliers based on purchase cost.
D) It encourages managers to increase the number of suppliers.