Which of the following is not a cost ratio plan step?
A) Additional costs incurred when doing business with a given supplier are identified
B) Costs are separated by quality, service, and price elements of supplier performance
C) Each cost is converted to a "cost ratio"
D) The highest individual cost ratio is then used to adjust the supplier's price
E) Adjusted prices are then used in supplier evaluation

Question

Quizplus · Accepted Answer

The step of "The highest individual cost ratio is then used to adjust the supplier's price" is not a part of the cost ratio plan. Instead, the step typically involves calculating an overall cost ratio for each supplier based on the weighted costs of quality, service, and price, and using this ratio to evaluate and compare suppliers.

Which of the Following Is Not a Cost Ratio Plan