An annual requirements contract:
A)is an inventory check of an organization's supplies at the end of the fiscal year.
B)is an individual spot contract on the open market.
C)is a buyer's obligation to fill a buyer's need for a product consistently over a year
D)is a buyer's responsibility to list out the requirements that a buyer should provide over an year.

Question

Quizplus · Accepted Answer

An annual requirements contract is a long-term agreement between a buyer and a seller in which the seller agrees to provide goods or services to the buyer over the course of a year. The buyer commits to purchasing a certain amount over that time period, and the seller agrees to supply that amount at a set price. It is not an inventory check, a spot contract, or a list of requirements, but rather a specific type of contract between a buyer and a seller.

An Annual Requirements Contract