In your organisation, if an expense is over R100 000, the CEO would need to approve the purchase before it can go ahead. Why is this step necessary? Group of answer choicesIt speeds up the approval process.It avoids involving executive managers in project finances.It ensures that all invoices are automatically approved.It provides an extra layer of control for high-value purchases.

Identify the invalid statement.Group of answer choicesRationing induces buyers to order higher amount in order to secure their allocation of supplies.Demand forecasts and production plans are jointly discussed during the CPFR.To cope with the variable demand, a firm should keep a constant pool of workers.Volumediscount is given to a buyer over a longer period of time, instead of every order.Next

From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.Group of answer choicesCost plus award fee (CPAF)Cost plus incentive fee (CPIF)Cost plus percentage of costs (CPPC)Cost plus fixed fee (CPFF)

When analysing a make-or-buy decision, costs that will be incurred regardless of the decision:Group of answer choicesare unavoidable and therefore should be ignored.are known as relevant costs.should be included in the decision.are known as incremental costs

When making short-term decisions whether to accept special orders at reduced prices, the most relevant factor is:Group of answer choicesnone of the options are relevant.fixed costs.variable costs.existence of spare capacity.

The manager must approve all discounts great than 10%Group of answer choicesControl weaknessControl activity