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Ludmilka [50]
3 years ago
7

Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

specialized investments. What are the primary advantages and disadvantages of acquiring inputs through this means? Give an example not used in the textbook that uses this method of procurement.
Business
2 answers:
solmaris [256]3 years ago
6 0

Answer:

the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is <u>Contracting.</u>

Explanation:

Contracting requires writing an agreement that extends the relationship between a buyer and a seller

The key features of contracting includes

  • specialization
  • reduced opportunism
  • avoidance of skimping on specialized investment
  • expensive in complex environments

The primary advantage of using contracting is specialization and the main disadvantage is high cost.

U.S. Shell Oil Company is the United States which is among the largest oil companies in the world is a good example of a company that uses Contracting method for procuring inputs.

son4ous [18]3 years ago
3 0

Answer:

The optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly specialized investments is the contract.

Explanation:

The contract is signed between the seller and the buyer, and establishes formal and legal terms, and agreed responsabilities. The primary advantages are that firms and buyers are allowed to focus in producing and getting what they need as contracts are used for tangible goods and for rendered services, reducing the opportunistic behaviour and underinvestment.

The CONASUPO, mexican government office, signed a contract with the mexican ranch owners to get all their milk production at low prices to feed the thousands of low income families.

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3 years ago
During the 1990s, one of the dominant firms in the U.S. cigarette industry would raise prices once or twice a year by about 50 c
ahrayia [7]

Answer: price leadership

         

Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.

This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.

Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.

Hence from the above we can conclude that the given case depicts price leadership strategy.

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3 years ago
Guillermo is currently in the process of projecting how much his firm will have to spend on supplies, travel, rent, advertising,
quester [9]

Answer:

The answer is c. operating (master) budget.

Explanation:

Let re-visit to the definition of operating budget to justify why c. operating budget is the answer.

Operating budget is the budget for revenues and expenses for the future period, that is, it forecast how many level of activities and how much they will cost for income generating purpose in the forecast period.

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5 0
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In​ 2013, the Oakland​ A's were one of the hottest teams in baseball. They were regularly drawing​ "sellout" crowds, with many m
igor_vitrenko [27]

Answer:

The other reason was to limit the number of special seats to charge a higher price for them.

Explanation:

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3 years ago
Organizations can use common core security principles recommended as industry best practices when developing policies, standards
egoroff_w [7]

Answer:

Timeliness principle.

Explanation:

Industry best practices can be used by various organizations as common core security principles to manage and control most, if not all of their assets and resources. These security principles can be adopted during the process of developing organizational policies, standards, baselines, procedures, and guidelines to effectively and efficiently manage the organization.

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